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 divest nearly a quarter of its locations. Reports from The Times indicate that Stonegate executives have been in discussions with potential advisors.
It is suggested that approximately 1,034 of its high-value “platinum” pubs could be part of the potential sale, amounting to a collective worth of £1 billion. Despite a turnover exceeding £1.7 billion last year, Stonegate faces debts exceeding £3 billion, largely attributed to the 2019 acquisition of Ei Group just before the pandemic led to nationwide pub closures.
In response to inquiries, a Stonegate spokesperson clarified that options for the Platinum portfolio, including refinancing, partial sale, or full sale of the pubs, are being explored, but no final decisions have been made. The company had previously attempted to sell a similar number of pubs in 2023, following which it refinanced 1,000 venues with a £638 million loan.
Stonegate, established in 2010 after TDR Capital’s purchase of 333 pubs from Mitchells & Butlers, is now approaching the end of a non-call period on a loan that restricted pub sales. Recent actions include putting 23 pubs up for sale and engaging with restructuring specialists.
In other pub-related news, Tim Martin, the head of Wetherspoon, expressed intentions to minimize price increases despite generating revenues of £2.13 billion. Martin acknowledged potential unavoidable price adjustments due to tax hikes but emphasized efforts to keep price hikes minimal, considering external factors like rising energy costs.