Stonegate Group, the parent company of Slug & Lettuce and Be At One, is considering selling over 1,000 of its pubs from its extensive portfolio of 4,300 venues. The potential sale, as reported by The Times, involves a significant portion of Stonegate’s assets, with 1,034 premium pubs valued at around £1 billion earmarked for the transaction. Despite generating revenues exceeding £1.7 billion in the previous year, Stonegate faces a substantial debt load exceeding £3 billion, largely stemming from its acquisition of Ei Group in 2019 just before the onset of the COVID-19 pandemic.
A spokesperson for Stonegate disclosed that the company is evaluating various options for the sale of the Platinum portfolio, which includes exploring refinancing, partial divestment, or a complete sale of the designated sites. Notably, no final decisions have been reached, as the company continues to progress with its strategic transformation efforts.
In a previous attempt in 2023, Stonegate sought to sell a similar number of pubs without success. Following this, the company secured a £638 million loan from private equity firm Apollo to refinance 1,000 of its venues. The loan’s non-call period, prohibiting the sale of these pubs, is set to conclude in January. Stonegate’s origins trace back to 2010 when private equity investor TDR Capital acquired 333 pubs from Mitchells & Butlers for £373 million.
Recent reports indicate that Stonegate listed 23 additional pubs for sale in September, overseen by real estate agents at Savills. This move followed earlier speculations in The Telegraph that Stonegate had engaged restructuring specialists from AlixPartners for advisory purposes. Regarding this divestment activity, a company spokesperson affirmed that such transactions are routine business evaluations for Stonegate.
In related pub industry news, Tim Martin, the head of Wetherspoon, expressed intentions to minimize price increases despite the company’s robust £2.13 billion revenue for the year. Martin highlighted the inevitability of price adjustments in response to tax hikes affecting the broader pub sector. However, he emphasized Wetherspoon’s commitment to mitigating price hikes and maintaining a positive outlook for the financial year, despite potential challenges from government-driven cost escalations, particularly in energy-related expenses.
