Britain's largest pub group, Stonegate, which owns chains including Slug and Lettuce and Be At One, is reportedly considering selling up to 1,000 of its 4,300 pubs. The move, valued at up to £1 billion, aims to address the company's estimated £3 billion debt, which arose after its 2019 merger with rival Ei Group, just months before the Covid-19 pandemic severely impacted the hospitality industry.
According to The Times, Stonegate has discussed plans with advisers to sell its 'platinum' collection of pubs, which are located in lucrative areas. The group previously attempted to sell some sites but failed, leading to a £638 million loan from private equity firm Apollo, secured against these platinum pubs. The loan's terms previously prevented Stonegate from selling or refinancing the properties.
However, the Apollo loan terms expire in January 2026, giving Stonegate the freedom to sell. Advisers have suggested selling pubs in groups of hundreds rather than individually. Stonegate's chief executive, David McDowall, who joined in 2023 from BrewDog, had previously outlined a 'transformation plan', but the company reported a loss of £214 million in 2024.
