Stonegate Group, the owner of popular establishments like 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 potentially involve offloading nearly a quarter of its properties. The initiative was first reported by The Times, indicating that Stonegate executives have engaged in discussions with potential advisors.
Reports suggest that around 1,034 of Stonegate’s premium pubs, known as the “platinum” pubs, are being considered for sale, with an estimated combined value of up to £1 billion. Despite achieving a turnover exceeding £1.7 billion in the past year, the company currently carries debts in excess of £3 billion.
The significant debt burden was primarily accrued following Stonegate’s acquisition of Ei Group in 2019, a transaction that occurred shortly before the onset of the COVID-19 pandemic, leading to widespread pub closures across the nation.
A spokesperson from Stonegate communicated to The Mirror, stating that various options are being explored for the Platinum portfolio, including refinancing, partial sale, or complete divestment of the identified pubs. However, no final decisions have been made yet, as the company is focused on advancing its transformation strategy.
In a prior attempt to sell a similar number of pubs in 2023, Stonegate faced an unsuccessful outcome. Subsequently, the pub group secured a £638 million loan from private equity firm Apollo to refinance 1,000 venues. The current non-call period on this loan, which restricts the sale of these pubs, is set to expire in January.
Established in 2010 through the acquisition of 333 pubs from Mitchells & Butlers for £373 million, Stonegate has been actively managing its pub portfolio. Earlier this year, it put 23 of its pubs on the market, with real estate specialists at Savills overseeing the sales process, following collaboration with restructuring experts from AlixPartners.
In a separate development within the pub industry, Tim Martin, the head of Wetherspoon, shared plans to minimize price hikes despite the company’s impressive revenue of £2.13 billion for the year. Martin emphasized the challenges posed by tax increases but affirmed Wetherspoon’s commitment to keeping price adjustments to a minimum to support customers amidst potential cost escalations in areas like energy.
