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 potential sale of these “platinum” pubs, as reported by The Times, could reach a value of £1 billion. Despite a revenue exceeding £1.7 billion last year, Stonegate carries a debt exceeding £3 billion.
The company’s significant debt accumulation traces back to its acquisition of Ei Group in 2019, just before the pandemic led to widespread pub closures. Stonegate has been in discussions with advisors to explore various options for its Platinum portfolio, including refinancing, partial sale, or complete divestment, while emphasizing that no final decisions have been made yet. The company is steadfast in its transformation strategy as it navigates through these potential changes.
In 2023, Stonegate attempted to sell a similar number of pubs without success. Subsequently, the company secured a £638 million loan from Apollo to refinance 1,000 venues. The non-call period on this loan, restricting pub sales, is set to expire in January. Established in 2010 through the purchase of 333 pubs from Mitchells & Butlers, Stonegate has been an evolving entity in the pub industry.
Recent reports indicated that Stonegate put up 23 pubs for sale, with Savills managing the sale process. The company’s proactive approach to reviewing its portfolio for divestment opportunities aligns with its ongoing business operations. In other pub-related news, Tim Martin, the head of Wetherspoon, aims to minimize price increases amidst a revenue of £2.13 billion for the year. Martin emphasized the challenges of potential tax hikes impacting the industry but expressed efforts to keep price adjustments to a minimum.
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