Slug & Lettuce owner sells off more than 100 pubs as strife in hospitality sector grows
UK hospitality giant refuses to rule out selling more pubs
- Stonegate, a major British pub operator owned by TDR Capital, sold 109 pubs over the last year as part of its "estate transformation strategy" to focus on leased properties.
- The company, which operates around 4,000 pubs including Slug & Lettuce, reported a loss of £174m for the year to September, with sales decreasing to £1.62bn.
- Stonegate's debt rose from £3.76bn to £3.81bn, with some of the proceeds from the pub sales intended to help reduce this financial burden.
- The broader UK hospitality sector is struggling due to factors such as increased wages, National Insurance contributions, high taxes, energy costs, and changing societal drinking habits, leading to pubs closing at a rate of one a day.
- Despite the financial challenges, Stonegate's CEO, David McDowall, stated that the sales are strategic for long-term success, with the industry hoping for a boost from the upcoming summer World Cup.
Bookmark popover
Removed from bookmarks