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 million while the company recorded losses of $214 million. Credit ratings agency Fitch reduced the operator's assessment to CCC plus, reflecting concerns about repayment capacity.
Chief executive David McDowall has implemented restructuring measures including converting managed locations into tenanted establishments, to reduce labor costs and improve profitability across the estate.
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 million while the company recorded losses of $214 million. Credit ratings agency Fitch reduced the operator's assessment to CCC plus, reflecting concerns about repayment capacity.
Chief executive David McDowall has implemented restructuring measures including converting managed locations into tenanted establishments, to reduce labor costs and improve profitability across the estate.
