Stonegate Group has initiated discussions with financial advisers regarding the potential disposal of approximately 1,000 premium pubs from its portfolio as the company navigates substantial debt obligations exceeding $3 billion. The hospitality operator, which controls the Slug and Lettuce and Be At One brands, accumulated the liabilities primarily through its acquisition of competitor Ei Group.
The collection under consideration could generate proceeds approaching $1 billion and consists of freehold properties generating annual earnings of roughly $90 million before interest, taxes, depreciation and amortization. Private equity firm TDR Capital, which owns Stonegate, faces mounting financial pressure as interest expenses reached $455...