Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering selling over 1,000 of its pubs. The pub chain, which operates 4,300 venues, may divest nearly a quarter of its establishments. Stonegate executives have engaged in discussions with potential advisors, as reported by The Times.
According to sources, approximately 1,034 of Stonegate’s premium pubs could be put on the market, with a combined estimated worth of £1 billion. Despite generating revenue exceeding £1.7 billion last year, the company is burdened with debts exceeding £3 billion.
The significant debt accumulation occurred following Stonegate’s acquisition of Ei Group in 2019, shortly before the pandemic led to widespread pub closures. Stonegate is currently reviewing various options for its Platinum portfolio, including refinancing, partial sales, or complete divestment of the pubs.
In a previous attempt in 2023, Stonegate unsuccessfully tried to sell a similar number of its pubs. Subsequently, the company refinanced 1,000 venues with a £638 million loan from Apollo. The non-call period on this loan, restricting pub sales, is expected to end in January.
Established in 2010 through the acquisition of 333 pubs from Mitchells & Butlers, Stonegate faces strategic decisions amid financial challenges. Recent reports indicated the company’s efforts to sell 23 pubs, with Savills overseeing the sale process, following collaboration with restructuring specialists.
Regarding Stonegate’s pub sale activities, a company spokesperson emphasized routine portfolio assessments for potential divestments. In other pub-related news, Tim Martin, the chief of Wetherspoon, aims to minimize price increases despite industry-wide challenges. Wetherspoon reported revenues of £2.13 billion for the year, with Martin expressing efforts to mitigate the impact of tax hikes on consumer prices.
As the pub industry navigates economic uncertainties, companies like Stonegate and Wetherspoon are strategizing to adapt to changing market dynamics and consumer demands.
