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 portfolio, this move could involve offloading nearly a quarter of its establishments. The Times initially reported that Stonegate executives have been in discussions with potential advisors.
Reports indicate that around 1,034 of its high-value “platinum” pubs could be part of this potential sale, collectively valued at approximately £1 billion. Despite generating revenues exceeding £1.7 billion last year, Stonegate carries debts exceeding £3 billion.
The company accrued a significant portion of its debt through the acquisition of Ei Group in 2019, just before the COVID-19 pandemic led to widespread closures of pubs nationwide.
A Stonegate spokesperson informed The Mirror that they are exploring various options for the Platinum portfolio, including refinancing, partial sale, or full divestment of the sites, emphasizing that no final decisions have been made as they continue to progress with their transformation strategy.
In a previous attempt to sell a similar number of pubs in 2023, the sale was unsuccessful. Subsequently, Stonegate secured a £638 million loan from private equity firm Apollo to refinance 1,000 of its locations. The non-call period on this loan, which restricted Stonegate from selling the pubs, is set to expire in January.
Established in 2010 following the acquisition of 333 pubs from Mitchells & Butlers for £373 million by private equity firm TDR Capital, Stonegate faces ongoing strategic decisions regarding its pub assets.
In a separate development, Tim Martin, the CEO of Wetherspoon, expressed intentions to minimize price increases despite the company’s substantial revenues of £2.13 billion. Martin highlighted the challenges posed by tax hikes within the pub industry, affirming Wetherspoon’s commitment to keeping price hikes to a minimum.
He further mentioned potential impacts on financial outcomes due to government-led cost escalations, particularly in sectors like energy, while maintaining a positive outlook for the company’s performance in the upcoming financial year.