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 under its belt, this move could see almost a quarter of its establishments changing hands. Stonegate executives have engaged in discussions with potential advisors, as initially reported by The Times.
Reports suggest that approximately 1,034 of Stonegate’s premium pubs, valued collectively at around £1 billion, may be put up for sale. Despite a revenue exceeding £1.7 billion last year, the company faces debts exceeding £3 billion, largely stemming from its acquisition of Ei Group in 2019, right before the pandemic-induced closures of pubs nationwide.
A spokesperson from Stonegate informed The Mirror that they are evaluating various options for the Platinum portfolio, including refinancing, partial sales, or complete divestment of the pubs. No final decisions have been made, and the company continues to progress with its transformation strategy.
In a previous attempt to sell a similar number of pubs in 2023, Stonegate was unsuccessful. To address this, the company refinanced 1,000 venues with a £638 million loan from Apollo. The non-call period on this loan, which currently restricts pub sales, is set to expire in January.
Established in 2010 after the acquisition of 333 pubs from Mitchells & Butlers for £373 million, Stonegate has put 23 pubs up for sale in September, with Savills managing the sales process. The company has stated that reviewing the portfolio for potential divestment opportunities is a regular practice.
In other pub-related news, Tim Martin, the head of Wetherspoon, aims to minimize price increases following the company’s £2.13 billion revenue for the year. Martin highlighted efforts to keep price hikes at a minimum, acknowledging potential cost pressures from increased taxes and energy expenses.
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