Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering selling over 1,000 of its pubs. With a total of 4,300 venues in its pub chain, the company may part ways with nearly a quarter of its establishments. The Times initially reported that Stonegate executives have been in discussions with potential advisors.
According to sources, approximately 1,034 of Stonegate’s premium pubs, known as “platinum” pubs, could be put up for sale, collectively valued at around £1 billion. Despite generating revenue exceeding £1.7 billion last year, the company is burdened with debts exceeding £3 billion.
Much of Stonegate’s debt stems from its acquisition of Ei Group in 2019, just before the pandemic led to widespread pub closures across the nation.
A Stonegate spokesperson informed The Mirror, stating, “We are exploring various options for the Platinum portfolio, consisting of around 1,000 Leased and Tenanted pubs. These options may include refinancing, partial sale, or full sale of the Platinum sites. However, no final decisions have been made, and we are making significant progress on our transformation strategy.”
In a previous attempt in 2023, Stonegate unsuccessfully tried to sell a similar number of pubs. Subsequently, the company refinanced 1,000 venues with a £638 million loan from private equity firm Apollo. The non-call period on this loan, preventing pub sales, is set to end in January.
Established in 2010 after TDR Capital acquired 333 pubs from Mitchells & Butlers for £373 million, Stonegate has been actively managing its pub portfolio. The company recently listed 23 pubs for sale, managed by estate agents at Savills, following reports of collaboration with restructuring specialists from AlixPartners.
Regarding the wider pub industry, Tim Martin, the chief of Wetherspoon, expressed intentions to minimize price increases despite challenges like tax hikes. Wetherspoon achieved revenues of £2.13 billion for the year, with Martin emphasizing efforts to keep price rises at a minimum, despite potential cost escalations due to government-led factors like energy prices.
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