Community-run pub closes over £50,000 rent debt

The Star of Greenwich became a community-run pub in 2023

A community-run pub in south-east London has been forced to close after their landlord called in "longstanding" rent arrears amounting to more than £50,000.

Kirsty Dunlop, one of three volunteers running the Star of Greenwich pub, said their landlord, the Greenwich Hospital, had asked for the arrears to be paid in full after they granted a repayment plan subject to securing funding to ensure the business' viability.

Greenwich Hospital, which is not a medical institution, is a charity established by the royal charter to support naval personnel and their families, operating independently but under the oversight of the Ministry of Defence (MoD).

The MoD has been contacted for comment.

Ms Dunlop, alongside Lisa Donohoe and James Gadsby Peet, fundraised to reopen the Star of Greenwich as a non-profit cooperative in 2023 after it closed down under a previous operator.

"For the last 18 months, myself, James, and Lisa have worked tirelessly, taking no money, no profit, or anything like that from the business to keep the Star alive," she told BBC London.

Kirsty Dunlop was one of three volunteers running the pub

Ms Dunlop said the pub had become a "community asset" for people living in east Greenwich and the venue was used for language classes, pop-up dining events led by refugee chefs, family playgroups and support for refugees.

Ms Dunlop explained that the rent Greenwich Hospital wanted to charge them "would not be viable" on the revenue it took in.

She said they came to an arrangement of paying half the rent amount each month on the basis of securing more funding to make the pub a viable enterprise.

There had been hopes of fundraising to purchase the building as well as applying for money from the government's community ownership fund.

Ms Dunlop said she had not heard anything about their application since before the general election in July and heard no mention of it in last month's Budget.

Ms Dunlop said the Star was a community meeting place as well as a local pub

The Ministry for Housing, Communities and Local Government (MHCLG) fund is designed to allow groups to take ownership of community assets and amenities at risk of being lost.

Ms Dunlop said the funding could pay off the arrears and begin making changes to the building to make it a more financially viable operation.

A MHCLG spokesperson said: "We recognise uncertainty is challenging for groups seeking to save vital community assets. The government is carefully considering all available options and will confirm plans in due course."

Ms Dunlop said the repayment plan offered by Greenwich Hospital was originally agreed to expire in January 2024 but extensions requested by the pub management were granted.

Since the funding to ensure the pub's viability had not yet been secured, the landlord has ended this arrangement and asked for the rent debt of more than £50,000 to be paid in full.

'Generational impact'

"In the current climate, it's very hard to keep businesses open," Ms Dunlop said.

"We try to keep our costs down and not put it back on the customer so it's not extortionate and people can enjoy a social setting that's affordable."

The pub closed its doors on Thursday evening.

Ms Dunlop said the management volunteers and staff have "tried so hard" to make the pub viable.

"The closure would have such a generational impact," she added.

"A pub isn't just about drinking; it's about inclusivity and a place to meet. We're trying to create a space where we listen to the community and provide them with what they need and require."

A leasing document for the pub seen by BBC News listed the office for the Secretary of State for Defence on behalf of Greenwich Hospital as party to the agreement.

The MoD did not respond to a request for comment at the time of publication.