Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering the potential sale of over 1,000 of its pubs. With a total of 4,300 venues in its pub chain, the company might divest nearly a quarter of its establishments. The Times initially reported that Stonegate executives have been in discussions with potential advisors.
Reports suggest that up to 1,034 of its premium pubs, valued at approximately £1 billion collectively, could be put up for sale. Despite a turnover exceeding £1.7 billion last year, Stonegate is burdened with debts exceeding £3 billion, largely stemming from its acquisition of Ei Group in 2019, just before the pandemic necessitated pub closures nationwide.
A spokesperson from Stonegate informed The Mirror that the company is evaluating options for its Platinum portfolio, including refinancing, a partial sale, or a full sale of the Leased and Tenanted pubs, but no final decisions have been made yet. In 2023, Stonegate unsuccessfully attempted to sell a similar number of pubs before refinancing 1,000 venues with a £638 million loan from Apollo.
The non-call period on this loan is set to expire in January, allowing Stonegate to potentially sell the pubs. Established in 2010 after TDR Capital acquired 333 pubs from Mitchells & Butlers for £373 million, Stonegate has recently listed 23 pubs for sale, with Savills overseeing the sale process.
Tim Martin, the head of Wetherspoon, aims to minimize price increases despite the company’s £2.13 billion revenue for the year. Martin expressed concerns over inevitable price adjustments due to tax hikes in the pub industry but emphasized Wetherspoon’s commitment to keeping price hikes to a minimum. He also noted potential financial impacts from government-led cost increases, particularly in energy expenses, for the upcoming financial year.