Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering selling over 1,000 of its pubs. The pub chain has a total of 4,300 venues, indicating a potential divestment of nearly a quarter of its locations. Reports from The Times revealed that Stonegate executives have been in discussions with potential advisors.
It is speculated that around 1,034 of Stonegate’s premium pubs, valued at approximately £1 billion collectively, could be put up for sale. Despite a revenue exceeding £1.7 billion last year, the company holds debts exceeding £3 billion, largely stemming from its acquisition of Ei Group in 2019, which occurred just before the pandemic led to widespread pub closures.
A spokesperson for Stonegate stated that they are exploring various options for their Platinum portfolio, including refinancing, partial sales, or a complete divestment of the pubs, clarifying that no final decisions have been made. In the past, the company attempted to sell a similar number of pubs in 2023 without success, leading to a refinancing deal with a £638 million loan from Apollo.
The loan’s non-call period, restricting pub sales, is set to conclude in January. Stonegate was established in 2010 following TDR Capital’s acquisition of 333 pubs from Mitchells & Butlers for £373 million. Recently, the company listed 23 of its pubs for sale with Savills, following reports of collaboration with restructuring experts from AlixPartners.
On a related note, Tim Martin, the head of Wetherspoon, expressed intentions to minimize price hikes despite the company’s revenues reaching £2.13 billion for the year. He acknowledged the potential for price adjustments due to tax increases in the pub industry but emphasized efforts to keep price increases to a minimum.
Martin highlighted that Wetherspoon aims for a reasonable financial outcome for the year, although external factors like energy cost increments driven by the government could impact the results.