Stonegate Considering £1bn Pub Sell-Off
Stonegate, the UK’s largest pub group, is reportedly exploring major financial options as it faces rising debts and ongoing economic pressure. According to The Times, Stonegate’s leadership has been in discussions with potential advisers as the company looks for ways to strengthen its finances.
The pub chain recorded over £1.7 billion in revenue last year, but it is currently carrying more than £3 billion in debt. To help ease this burden, Stonegate is considering selling 1,034 of its pubs, which include some of the company’s most valuable properties. Analysts believe these pubs could generate up to £1 billion.
Despite the potential sales, a spokesperson confirmed to The Sun that no Stonegate venues are at risk of closure, and all pubs will continue to operate normally under the Stonegate brand.
Why Stonegate May Sell Pubs Now
Stonegate previously attempted to sell a similar number of pubs in 2023 but failed to secure a deal. Instead, the company refinanced 1,000 pubs through debt firm Apollo, injecting new funds into the business.
The pub group is now reconsidering sales because a non-call period on the Apollo loan—preventing Stonegate from selling pubs—expires in January.
Stonegate is owned by private equity firm TDR Capital, which also owns Asda.
What Happened to Stonegate?
Stonegate was established in 2010 when TDR Capital purchased 333 pubs from Mitchells & Butlers. Over the next decade, the brand grew rapidly through multiple acquisitions.
In 2019, Stonegate merged with rival Ei Group, creating the largest pub chain in Britain. However, the deal added significant debt just months before the Covid-19 pandemic, which forced pubs to close for long periods.
Since the pandemic, UK pub chains have struggled with: High interest rates Rising staff costs Increased food and energy bills
Last year, CEO David McDowall launched a “transformation plan” to bring the company back to profitability. Despite these efforts, Stonegate reported a £214 million loss in 2024.
A key strategy has been converting many Stonegate-operated pubs into tenanted or leased venues, run directly by local publicans. As part of this restructuring, Stonegate listed 23 pubs for sale in September.
Full List of Stonegate Pubs Put Up for Sale
Dog & Duck, Walthamstow, Fagins, Brookthorpe, Feathers, Chalfont St Giles, Frankland Arms, Washington, Garden Bar, Hove, Golden Ball, York, Harbour Moon, West Looe, Letters Inn, Tattenhall, Malthouse, Timsbury, Milehouse, Cross Heath, Moorings, Loughborough, Pax Inn, Thorp Arch, Romantica, Sutton Coldfield, Salthouse Hotel, Clevedon,Seven Stars, Canterbury, Star, Hampton Hill, Wickham Arms, Brockley, Windmill, Peterborough
A Stonegate spokesperson said the sale was “business as usual” as the company continually reviews its portfolio for divestment opportunities.
Tough Market Conditions for UK Pubs
Many UK hospitality businesses continue to suffer from the after-effects of the pandemic and the ongoing cost-of-living crisis.
Oakman Inns & Restaurants entered administration this year, putting 19 sites at risk.
Sri Lankan restaurant chain The Coconut Tree is being wound up after defaulting on its Company Voluntary Agreement.
Officina 00, a popular pasta group, closed three London locations
The Cosy Club in Ipswich shut down in May.
Rising National Insurance, increased overhead costs, and reduced consumer spending have all intensified the strain on pub and restaurant operators nationwide.
