Stonegate looks at selling off number of pubs

Stonegate has more than 4000 pubs (PA Wire)

Pubs giant Stonegate, behind the Slug & Lettuce and Be At One Chain, is looking to sell up to 1000 sites to pay down its debt pile, it has been reported.

The company completed a takeover of Ei, then the UK’s biggest company, just before the Covid-19 crisis and created a firm which today has some 4500 sites.

The industry has since been trying to bounce back from a challenging time that saw lockdowns temporarily close the hospitality sector.

Stonegate, which is owned by private equity firm TDR Capital, has a £2.6 billion debt pile and plans to sell 1,000 of its pubs for an estimated £800 million, Bloomberg reported.

Sources said any sale was not imminent and would be in line with Stonegate’s long term plan to dispose of sites that did not meet its strategy.

According to Bloomberg, Stonegate has appointed real estate investment bank Eastdil Secured to advise on its planned pub sale, which is likely to kick-off by spring.

TDR declined to comment. Stonegate and Eastdil Secured have been approached for comment.