Stonegate boss 'confident for future' of pub group despite £2.2bn debt

The parent company of 21 Nottingham pubs and bars has admitted that there is no guarantee that £2.2 billion of debt will be refinanced, but the top boss wants to assure punters and staff that venues are not at risk.  

Stonegate Pub Company, which runs 4,500 pubs and bars across the UK, including 21 here in Nottingham, is yet to agree new loans to refinance debt due for repayment in June 2025.

The pub group, which runs the Slug and Lettuce and Popworld brands, employs more than 19,000 people. 

Don’t miss the news that matters to you - get the NottinghamWorld newsletter Stonegate said: “Since the refinancing plans haven’t been executed, there is an indication that a material uncertainty exists that may cast significant doubt on the company and group’s ability to continue as a going concern.”

The company is owned by TDR Capital, which is headquartered in the Cayman Islands. 

However the Stonegate boss has issued a statement saying he is “pleased with performance” and has “confidence in the future”.

David McDowall, CEO of Stonegate, said: “I am really pleased with the performance of the business in 2023, which included a sector-leading Christmas trading period. We have delivered a rise in revenue and a significant increase in profitability. Our all-round performance exemplifies the strength and depth of the Stonegate estate, with our outstanding Craft Union and L&T divisions continuing to lead the way. This is testament to the hard work of our people and partners, but also to the success of our on-going initiatives to increase profitability across our portfolio of brands and venue formats. 

 "Our performance gives me real confidence in the future and excitement in seeing our strategy come to fruition. Notably our asset optimisation plan which makes sure we have the right pub in the right location, further profit improvement initiatives, and above all our efforts to continue to support the Great British pub.

“With a summer of sport on the horizon, and the Euro’s and T20 World Cup fast approaching, we are looking forward to building on this momentum in the months ahead. We have been very clear that we continue to work towards achieving our long-term balance sheet goals, with the successful refinancing of a portion of our estate in December marking a significant strategic step towards this. 

“We would also like to assure our valued employees and partners that venues are not at risk as a result of this process.”

In January Justin Bowden, Southern Regional Secretary of the GMB union, 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.”

The full list is of Stonegate-owned pubs and bars in Nottingham is as follows: 

• Popworld Nottingham

• Huddl

• Slug and Lettuce Nottingham Market Square 

• Be at One Nottingham

• Pit & Pendulum, Victoria Street

• The Loxley, Pelham Road, Victoria/Street

• Faradays, Victoria Street and Pelham Street

• The Thurland Hall, Thurland Street

• Little Langtry’s, South Sherwood Street

• Slug and Lettuce Cornerhouse Nottingham 

• Horn in Hand, Goldsmith Street

• The Sherwood, Mansfield Road

• Willow Tree, Rufford Way

• The Jesse Boot, High Road

• The Jolly Anglers, Meadow Road

• Greyhound Inn, Nottingham Road

• The Oxford, Highbury Road

• The Royal Oak, Main Road

• The White Lion, Derby Road

• The Blue Bell, High Street

• The King’s Head, Market Place, Ilkeston