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 pub chain, this move could involve nearly a quarter of its locations. Discussions with potential advisors have been reportedly initiated by Stonegate’s top management, as per an initial report by The Times.
The potential sale could include 1,034 of its premium pubs, known as the “Platinum” portfolio, with an estimated combined value of up to £1 billion. Despite a revenue exceeding £1.7 billion last year, Stonegate carries a debt exceeding £3 billion, largely stemming from its acquisition of Ei Group in 2019, just before the pandemic led to widespread pub closures.
Stonegate’s spokesperson informed The Mirror that they are evaluating various options for the Platinum portfolio, including refinancing, partial sale, or full divestment of the sites, emphasizing that no final decisions have been made. Stonegate’s previous attempt to sell a similar number of pubs in 2023 was unsuccessful, leading to a refinancing of 1,000 venues with a £638 million loan from Apollo.
The upcoming end of the non-call period on this loan in January will potentially allow Stonegate to proceed with pub sales. Established in 2010 through the acquisition of 333 pubs from Mitchells & Butlers by TDR Capital, Stonegate has continued to evolve its pub portfolio strategy.
In a separate development, Tim Martin, the head of Wetherspoon, aims to minimize price hikes amidst the company’s impressive £2.13 billion revenue for the year. Martin highlighted the challenge of potential tax-related price increases in the pub sector but expressed Wetherspoon’s commitment to keeping price adjustments to a minimum, striving for a positive financial outlook despite external cost pressures like rising energy expenses.