Union warns more than 100 pubs across Sussex at risk over major refinancing plan
Stonegate - which owns Slug and Lettuce, Yates and Walkabout - is in talks about sorting out £2.6 million of debt
A union is warning that more than 100 pubs across Sussex could be put at risk because of a major refinancing plan.
Stonegate Pub Company - which owns Slug and Lettuce, Yates and Walkabout - is in talks with the owners of Asda about sorting out £2.6 million pounds of debt.
However, with current high interest rates, GMB Union is concerned refinancing could lead to crippling payments to service the debt,
Stonegate is one of the largest pub companies in the UK, with more than 4,500 pubs and more than 19,000 workers.
Stonegate has more than 100 pubs across the Sussex, they are as follows:
- East Sussex - 42 pubs
- West Sussex - 65 pubs
Justin Bowden, GMB Southern Regional Secretary, 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 pubs which are vital community assets.
“GMB’s experience with private equity owners has been, and continues to be, wholly negative.
“We fear for the future of our local supermarkets and pubs in the hands of their private equity owners."
A spokesperson from Stonegate said: “We continue to invest in our pubs and our people, in particular supporting local pubs which play such a key role in their communities.
"Our pub business remains very resilient despite the challenges our industry faces, with good like-for-like sales growth across the group.
"Following our recent successful financing announced in December as well as strong recent trading, we are well placed to deliver on our longer term objectives and we are very confident in our ability to re-finance at the appropriate time.”