Stonegate Group, the owners of Slug & Lettuce and Be At One, is in discussions to sell more than 1,000 boozers as it battles to stay afloat, according to reports
The company, which owns around 4,300 venues, is reportedly considering selling off some of the chain's best properties in a deal reportedly to be worth around £1 billion.
It is believed that Stonegate remain in discussions with advisers at this time, according to reports.
Despite bringing in over £1.7 billion last year, the company has accrued debts of more than £3 billion over the past few years.
Plans to sell 1,034 of Stonegate's pubs is being seen as an attempt to rescue the business from going under, following a previous failed bid to sell off venues in 2023.
Following the failed deal, the company managed to refinance 1,000 of its pubs with the debt firm Apollo in order to revitalise the business, but now is considering its options because a non-call period on the loan – which blocked sale of the pubs – is ending in January.
Stonegate is owned by private equity firm TDR Capital, which is also in charge of British supermarket Asda.
Formed in 2010 when TDR bought over 300 pubs from Mitchells & Butlers, Stonegate became a big player in the pub trade over the subsequent decade due to a string of smart acquisitions.
This peaked in 2019, when it completed a mega-merger with rival company Ei – making it Britain’s biggest pub chain.
Although promising at the time, the deal left the company with significant debt as the Covid pandemic broke out, causing venues to close.
Following re-opening venues, high interest rates, increased minimum wage for employees and bills skyrocketing have caused significant costs for the sector.
As consequence, the firm suffered a loss of £214million in 2024.
