The owner of some of the UK's most prominent pub chains, including Slug & Lettuce and Be At One, is exploring a monumental sale that could see over 1,000 of its establishments change hands.
A Quarter of the Estate on the Line
Stonegate Group, which operates a vast portfolio of 4,300 venues across the country, is considering the potential sale of 1,034 of its so-called 'platinum' pubs. This strategic move, first reported by The Times, could see around a quarter of its entire estate being let go.
The group has a significant presence in Birmingham and the wider West Midlands, meaning local branches are likely to be affected by this major shake-up. The large portfolio of pubs involved is estimated to be worth as much as £1 billion.
Debt and a Previous Attempt
This is not the first time Stonegate has attempted such a large-scale disposal. The company tried to sell a similar number of branches back in 2023, but the effort was unsuccessful. Following that, it secured the platinum pubs with a £638 million loan from private equity house Apollo.
A key factor enabling the current exploration is that the loan's non-call period, which had prevented a sale, is officially ending in January.
Despite reporting a turnover of more than £1.7 billion in profit last year, the company is carrying a substantial debt burden. It has been flagged that Stonegate is sitting on debts of more than £3 billion as of the year to 29 September 2024. A large portion of this debt was reportedly created following its merger with rival Ei Group in 2019, just before the Covid-19 pandemic.
What Happens Next?
A spokesperson for Stonegate confirmed the exploration to The Mirror, stating: “We are looking at options for the Platinum portfolio, of circa 1,000 Leased and Tenanted pubs, which could include a refinancing, partial sale, or full sale of the Platinum sites but as we explained to our bondholders, no decisions have been made.”
The company emphasised that it is “continuing to make good progress on our transformation strategy.” In a separate action this year, Stonegate already put 23 of its pubs up for sale in September, with estate agents Savills appointed to handle those transactions.
Senior executives at Stonegate have now held discussions with potential advisors to examine the options for this much larger portfolio, marking a pivotal moment for one of the UK's largest pub operators.
