Pub chain Stonegate responds to "fears" over 33 Portsmouth pubs amid £2.5bn of debt

As reported on Tuesday, national pub operator Stonegate - which includes brands like Slug and Lettuce - might be at risk as parent company TDR Capital seeks to refinance £2.5bn of debt.

It means 33 pubs in Portsmouth are among those facing uncertainty, according to the GMB Union. Gary Lindsay, boss of TDR Capital which also owns supermarket giant Asda, told the Business and Trade Select Committee on Tuesday last week he was “confident” £2.6bn of debts in the Stonegate Pub Company could be refinanced this year.

However, with current high interest rates, GMB Union said it was concerned refinancing could lead to crippling payments to service the debt. Stonegate is one of the largest pub companies in the UK, with more than 4,500 pubs and more than 19,000 workers, including brands like Slug and Lettuce, Yates and Walkabout. 

Justin Bowden, GMB Regional Secretary, said: “The position with the Stonegate Pub Company’s finances is lacking in transparency, with the ultimate holding company based in the Cayman Islands. TDR Capital must be accountable to local people and they have a duty to safeguard 4,500 pubs which are vital community assets.

“GMB’s experience with private equity owners has been, and continues to be, wholly negative. We fear for the future of our local supermarkets and pubs in the hands of their private equity owners."

But Stonegate has now moved to calm fears over possible closures. A spokesperson for the pub operator told The News: “We continue to invest in our pubs and our people, in particular supporting local pubs which play such a key role in their communities. 

“Our pub business remains very resilient despite the challenges our industry faces, with good like-for-like sales growth across the group. Following our recent successful financing announced in December as well as strong recent trading, we are well placed to deliver on our longer term objectives and we are very confident in our ability to re-finance at the appropriate time.”

Pubs potentially impacted in Portsmouth include:

The Rose in June, Rutland Arms, Northcote Hotel, the Painters Arms, The Compass Rose, Lord Chichester, The Churchillian, Sunshine, Leopold Tavern, Trafalgar Arms, Eastfield Hotel, Old Oyster House, Milton Arms, Old House at Home, Thatchers, The Fountain, Jolly Sailor, Lord John Russell, Lawrence Arms, Phoenix, Scarlet Tap, Lord Fitzclarence, Duke of Devonshire, Royal Albert, The Dolphin, Pembroke, The Eldon Arms, Barleymow, Popworld Portsmouth, The Fleet, The Dockyard, The Liquorist, Slug and Lettuce Portsmouth.