Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering selling over 1,000 of its pubs. The pub chain, with 4,300 venues in total, may divest nearly a quarter of its establishments. Stonegate executives have engaged in discussions with potential advisors, as reported by The Times.
It is speculated that 1,034 of Stonegate’s premium pubs, valued at around £1 billion collectively, could be put up for sale. Despite a revenue of over £1.7 billion last year, the company is burdened with debts exceeding £3 billion. Much of this debt was accrued following Stonegate’s acquisition of Ei Group in 2019, just before the onset of the COVID-19 pandemic that led to widespread pub closures.
A spokesperson from Stonegate informed The Mirror that they are exploring various options for the Platinum portfolio, including refinancing, partial sale, or full divestment of the 1,000 Leased and Tenanted pubs. Stonegate’s unsuccessful attempt to sell a similar number of pubs in 2023 resulted in a refinancing deal worth £638 million with private equity firm Apollo.
The non-call period on the loan obtained from Apollo, which restricts Stonegate from selling the pubs, is set to expire in January. Established in 2010 through the purchase of 333 pubs from Mitchells & Butlers for £373 million by TDR Capital, Stonegate has been actively managing its pub portfolio. Recent news also includes Tim Martin of Wetherspoon aiming to limit price increases despite challenges in the pub industry.