Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering selling over 1,000 of its pubs. The pub chain operates 4,300 venues, indicating a potential divestment of nearly a quarter of its locations. Initial reports from The Times revealed that Stonegate executives have been in discussions with potential advisors.
The newspaper suggested that around 1,034 of its high-value “platinum” pubs could be put up for sale, with an estimated total worth of £1 billion. Despite a revenue exceeding £1.7 billion last year, Stonegate carries debts exceeding £3 billion.
The company accrued a significant portion of its debt following the 2019 acquisition of Ei Group, a move made shortly before the pandemic forced pubs nationwide to close.
A spokesperson for Stonegate informed The Mirror that the company is exploring various options for its Platinum portfolio, including refinancing, partial sale, or complete divestment of the relevant sites. However, no final decisions have been made as per discussions with bondholders, while progress continues on the transformation strategy.
Previously, in 2023, Stonegate attempted to sell a similar number of pubs without success. Subsequently, the company refinanced 1,000 venues through a £638 million loan from private equity firm Apollo. The non-call period on this loan, preventing pub sales, will conclude in January.
Established in 2010 through the acquisition of 333 pubs from Mitchells & Butlers for £373 million by private equity firm TDR Capital, Stonegate has been active in managing its pub portfolio. Recent actions include the sale of 23 pubs in September, with Savills overseeing the process, following reports of collaboration with restructuring specialists from AlixPartners.
Regarding other pub news, Tim Martin, the head of Wetherspoon, expressed intentions to minimize price increases after the company’s revenue reached £2.13 billion. Martin emphasized efforts to mitigate price hikes amidst tax changes affecting the industry, anticipating a reasonable financial outcome while acknowledging potential impacts from government-led cost escalations such as energy.
The information presented is based on data collected through cookies and other identifiers to enhance user experience, analyze site usage, and deliver personalized advertising. Users can manage data sharing preferences by accessing the provided options on the webpage. Acceptance of cookie usage, privacy policies, and terms and conditions signifies agreement with the practices outlined by the website and its partners.