Screen grab (Source: X/@Independent)
Stonegate Group, the UK’s largest pub operator and owner of chains including Slug & Lettuce and Be At One, is reportedly considering the sale of around 1,000 sites in a deal potentially worth 1 billion pounds, The Independent reported.The move comes as the group seeks to address an estimated 3 billion pounds in accumulated debts.According to Independent, the sites under consideration form a portfolio of the group’s most profitable pubs, often described as its “platinum” collection. According to The Independent, these pubs are structured as a separate entity within Stonegate, allowing a sale without affecting the rest of its estate of 4,300 sites. Executives are consulting advisers on options, including selling the pubs in smaller groups rather than in a single transaction.A Stonegate spokesperson told The Sun that no pubs are at risk of closure and all sites will continue to operate under the Stonegate brand. Analysts note that many UK pub chains remain under pressure, with several, such as Oakman Inns & Restaurants, entering administration earlier this year due to elevated costs and reduced revenue.Stonegate’s financial difficulties date back to its 2019 merger with rival company Ei, which left the group heavily indebted just months before the Covid-19 lockdown severely impacted the hospitality sector.Attempts to sell some sites in previous years were unsuccessful, and the group instead refinanced the platinum pubs with a 638 million pounds loan from private equity firm Apollo. The end of a non-call period on this loan in January could allow Stonegate to pursue a potential sale, The Independent reported.Chief executive David McDowall, who joined the company from BrewDog in 2023, had outlined a “transformation plan” to return Stonegate to profitability. Despite these measures, the company posted a 214 million pounds loss in 2024. The wider UK hospitality industry too continues to face challenges from high operating costs, rising energy and food prices, increased national insurance contributions, and the ongoing impact of the Covid-19 pandemic on customer spending.
