Britain’s biggest pub group has found a way to keep the wolf from the door as it tackles a £3 billion pile of debt. Stonegate pub group, which runs more than 4,000 pubs across the UK, has been open about its recent financial struggles, triggered largely by its 2019 acquisition of Ei Group for £1.27 billion. A spokesperson for the company, which owns the Slug & Lettuce and Sports Bar & Grill chains, admitted earlier this year that “a material uncertainty exists that may cast significant doubt on the company and group’s ability to continue as a going concern.” Stonegate has been seeking ways to refinance its debts since February 2024, and has appointed bankers at Evercore and lawyers at Kirkland & Ellis to explore options. This week, one of those options materialised in the form of Stonegate owner TDR Capital agreeing to pump £250 million into the company, simultaneously handing over its stake in the group to one of Stonegate’s lenders. The move will see the terms of the company’s debt extended to 2029, which will ease the financial pressure on the pub firm. Among the lenders said to be included in the refinancing deal is Albacore Capital Group, which will receive a stake in the company in exchange for a cash injection and the right to appoint a director to Stonegate’s board. Acquired debt Stonegate racked up much of its debt through its acquisition of Ei Group. Before the purchase, Stonegate owned around 760 sites, a number which
This Article was originally published on The Drink Business - Wine
