Star Pubs and Bars and PCA reach £1.25m settlement
Star has also agreed to pay a contribution to the PCA’s legal costs involved in the litigation and in the conduct of the investigation
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Star Pubs and Bars has agreed to pay a £1.25m financial penalty imposed by Pubs Code Adjudicator (PCA) in order to end litigation with the High Court.
On 14 October 2020, the PCA issued an investigation report which found that Star had breached the Pubs Code. In a joint statement from both parties, Star accepted that it breached the Pubs Code as the investigation found out.
The PCA made eight binding recommendations to Star aimed at improving processes and governance, and overall compliance with the Pubs Code. Star has fully cooperated and has implemented the recommendations for all its tenants.
On top of the £1.25m penalty, which was initially set at £2m, Star has also agreed to pay a contribution to the PCA’s legal costs involved in the litigation as well as a contribution to the PCA’s costs of conducting the investigation which resulted in the report and penalty notice.
In the joint statement, the parties said: “The PCA and Star consider settlement of this litigation will help to facilitate the positive regulatory relationship between them, building on Star’s constructive work in respect of compliance, to the benefit of the tied pub industry.”
