Large pub chain is selling 23 venues: what is known about the reasons and the list.

Sale of 23 pubs due to restructuring

According to The Sun: A large pub chain, which has 4,000 locations, has put 23 of its venues up for sale as part of a restructuring.

The Stonegate Group, which owns brands such as Slug & Lettuce and Be at One, as well as many traditional pubs, has engaged real estate agents Savills to carry out this process.

AlamyStonegate has put 23 pubs up for sale

The pubs, located in cities such as Plymouth, Walthamstow, and Bromley, are already available on the market.

All the venues listed for sale continue to operate as usual and remain under the Stonegate brand.

The sale may occur individually for each venue or as part of small packages.

“Pubs continue to prove their resilience and appeal as an asset class, thanks to the strong fundamentals of the sector – long leases, indexed rent reviews, and resilient trading performance,” said Stuart Stairs, director of the licensed sector at Savills.

Here is the complete list of venues that are for sale:

• Dog & Duck, Walthamstow
• Fagins, Bracknell
• 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, Bromley
• Windmill, Peterborough

Outlook 'The Sun' reached out to Stonegate for comment.

At the same time, The Telegraph reported that the large brewery is working with restructuring specialists AlixPartners.

The group, owned by TDR Capital, has reportedly approached the consulting firm for advice on a potential cut of up to 150 staff members at its head office.

Positions in pubs and bars will not be affected, and there will be no closures as a result of the restructuring.

“This, combined with rising costs, particularly following the latest budget, means that we must reorganize our support functions to match the shape of our business today,” a company representative stated.

Earlier in 2023, the company raised concerns about its viability, trying to cover its debts. However, it subsequently secured refinancing to cope with financial difficulties.

Stonegate is owned by TDR Capital, which also partially owns Asda and is registered overseas in the Cayman Islands.

At the end of 2023, the company refinanced 1,000 of its pubs with the debt firm Apollo to bring in fresh cash to the business.

Challenges for pubs in the UK

Many pubs and bar chains in the UK are still feeling the impacts of the pandemic and the cost-of-living crisis that followed. Rising prices for everyday goods mean that there is less money left for customers to spend.

Earlier this year, Oakman Inns & Restaurants entered administration, putting 19 locations at risk of closure. The group blames the pandemic's aftermath and rising interest rates on its troubles.

It was also revealed that The Coconut Tree will close as it failed to meet its obligations under a voluntary arrangement.

Meanwhile, popular restaurant Officina 00 closed three of its locations in London.

Fuller’s secretary reported that the group increased beer prices due to an additional cost of 8 million pounds.

“Prices are likely to rise by 10 pence to cover additional costs,” Simon Emney exclusively stated in an interview with 'The Sun'.

The current situation in the UK pub and bar industry remains challenging. Many establishments are trying to find a way out of financial difficulties exacerbated by the pandemic and economic challenges. The situation surrounding the restructuring and sale of the Stonegate pub pool may reflect larger trends in the industry that require swift responses from businesses.