Stonegate Group, the owner of Slug & Lettuce and Be At One, is considering the potential sale of over 1,000 of its pubs. With a total of 4,300 venues in its pub chain, this move could involve letting go of nearly a quarter of its establishments. The Times was the first to report that Stonegate executives have been in discussions with potential advisors.
Reports suggest that around 1,034 of its top-performing “platinum” pubs may be put up for sale, with an estimated combined worth of £1 billion. Despite generating revenue exceeding £1.7 billion last year, Stonegate is burdened with debts exceeding £3 billion.
The significant debt accumulation by Stonegate can be attributed to its acquisition of Ei Group in 2019, shortly before the pandemic led to the closure of pubs nationwide.
A Stonegate spokesperson informed The Mirror that they are exploring various options for their Platinum portfolio, including refinancing, partial sale, or complete divestment of the selected pubs. However, no final decisions have been made yet as they continue to progress with their transformation strategy.
Stonegate had attempted a similar sale of pubs in 2023 without success. Following this, the company refinanced 1,000 venues with a £638 million loan from private equity firm Apollo. The non-call period on this loan, which prohibited the sale of these pubs, is set to expire in January.
Established in 2010 after the purchase of 333 pubs from Mitchells & Butlers for £373 million, Stonegate has been actively managing its pub portfolio. Recently, the company placed 23 of its pubs for sale, overseen by estate agents at Savills. Tim Martin, the head of Wetherspoon, also shared plans to minimize price increases despite industry challenges, aiming for a positive financial forecast for the year ahead.