Reports indicate that Britain has the largest pub group, which is weighing the idea of selling 1000 locations which may cost up to £1 billion.
Stonegate Group bosses who own 4300 pubs in the UK, are in negotiation to sell a out a quarter of them given that the executives are attempting to cover about £3 billion in accrued debts.
In 2023, Stonegate tried to sell an equivalent of pubs portfolio behind deciding to securitize the platinum pubs to take a £638 million loan with Apollo, a private equity firm, and this move relieved the company of some of its financial burden.
According to the Times The Slug & Lettuce and Be At One owner is seen to have met with advisers to discuss the possibility of releasing their so-called platinum collection to the market.
This set of 1034 pubs, which is made up of the best properties of the group, constitute a seperate section of the company that the experts opine could be sold off, without harming the other stock of the company.
The £3 billion deficit that Stonegate Group had after the merger with its competitor Ei in 2019 was the straw that broke the camel of the industry, which plunged into ruins in a few months during
COVID lockdown.
It has attempted to sell several pubs in vain before it successfully securitized the platinum pubs using a £638 million loan provided by private equity house Apollo.
Stonegate chief executive, David McDowall, has already commented that the firm would undergo a transformation plan, but the company has lost £214 million in 2024.
His plan has been to transform many pubs run by the company into tenanted and lease establishments that are more profitable and this has acted to shield him against increasing labour expenses. This has been reported to give an average of £110,000 her publish in profits, and McDowall has stressed upon the need to establish strong, community-oriented pubs that can adjust to the evolving consumerism.
It further operates under difficult circumstances in the UK hospitality sector after COVID and the cost of living crises, as well as increases in national insurance contributions and the minimum wage of employers.
It further operates under difficult circumstances in the UK hospitality sector after COVID and the cost of living crisis, as well as increases in national insurance contributions and the minimum wage of employers.
With the hype surrounding the possibility of selling platinum pubs owned by Stonegate, the management is still preoccupied with how to overcome these financial challenges as it reinvigorated it’s businesses. Stonegate representatives have not made any more statements about the situation at hand.
