Stonegate: major pub firm behind Slug and Lettuce ‘plans to sell up to 1000 sites’

Stonegate, a major pub chain behind brands such as Slug and Lettuce and Be At One, has announced plans to sell up to 1,000 sites.

The chain, which is owned by private equity firm TDR Capital, has a £2.6 billion debt pile, according to Bloomberg, and will sell 1,000 pubs for around £300 million. Stonehenge Pub Company has around 4,800 managed, leased and tenanted pubs making it one of the largest pub companies in the UK.

Just before the pandemic, Stonegate became Britain’s biggest pub group after spending nearly £1.3 billion buying rival Ei Group, formerly known as Enterprise Inns plc, which was the largest pub company in the UK and had around 5,000 properties.

However, with its plans to sell 1,000 sites, thousands of jobs will be at risk. The news comes after reports that chains across the UK have struggled to make up ground lost during the pandemic, after it was revealed that many people in the UK are opting to drink at home.

Many pubs are also factoring in the cost-of-living crisis, soaring energy bills, persistent labour shortages and high inflation. The cost of energy is the "biggest concern" of the pub group, who said they don’t know what the bill will be from April.

Speaking about the plan, Ian Payne, Stonegate’s chairman, said in an interview: “The biggest concern is energy. We know what we’re going to pay in February and March. But we still don’t know what we’re going to pay beyond that.”

The news comes after bar group Revolution said that it will shut its venues on Mondays and Tuesdays in early February due to rocketing energy costs. Shares in the company fell by as much as a quarter on Tuesday (17 January) as the hospitality firm recorded a hit to trade from industrial action.

Revolution Bars Group, which also owns the Revolucion de Cuba and Peach Pub brands, said earnings for the year are “likely to be lower than previously guided”.

Rob Pitcher, chief executive officer of the group, said: “The board have reviewed their expectations for the full year, taken a number of actions to mitigate the external factors where possible, and will continue to track these closely.

“The decision to close some bars on a Monday and Tuesday in the early weeks of the year allows us to minimise energy usage in our quietest period whilst also allowing our teams to recover after the busy Christmas period.”