Star Pubs & Bars has agreed to pay £1.25m as part of a settlement with the Pubs Code Adjudicator (PCA).
Star had challenged the imposition and amount of a financial penalty of £2m imposed by the PCA following breaches of the Pubs Code.
In October 2020, the PCA issued a report which found that Star had breached the Pubs Code, with Star accepting the investigation findings.
The PCA made eight binding recommendations to Star aimed at improving processes and governance, and overall compliance with the Pubs Code.
The PCA said Star fully co-operated with the regulator and implemented the recommendations, taking “significant steps to reform its processes in order to achieve compliance with the Pubs Code”.
The PCA and Star have now agreed to settle all outstanding litigation connected to the investigation report and financial penalty.
As part of this settlement the financial penalty, set out in the penalty notice, has been reduced from £2m to £1.25m, and Star will pay a contribution to the PCA’s legal costs involved in the litigation.
Separately, Star will also pay a contribution to the PCA’s costs of conducting the investigation which resulted in the report and penalty notice.
According to a statement on the watchdog’s website: “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.”
