Union warns 4500 pubs in UK could be at risk
Stonegate - which owns Slug and Lettuce, Yates and Walkabout - is in talks about sorting out £2.6 million of debt
More than 4,500 pubs across the UK could be at risk as TDR Capital, the parent company of Stonegate Pubs is seeking to refinance £2.5 billion of debt.
The GMB Union is worried about high interest rates leading to debt service payments getting out of hand and becoming unaffordble.
Addressing thos concerns, TDR Capital's CEO Gary Lindsay expressed confidence in refinancing £2.6 billion of debts within the Stonegate Pub Company this year.
Stonegate owns chains like Slug and Lettuce, Yates, and Walkabout and employs over 19,000 workers.
The substantial interest payments on TDR Capital's debts have already affected Asda, leading to reduced staff hours, compromises in health and safety, and a rise in what's being called a 'toxic culture' at the supermarket.
Justin Bowden, GMB Southern Regional Secretary, said:
“The position with the Stonegate Pub Company’s finances is equally lacking (to asda) 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 the 650 local 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.
“We are far from reassured that our members and our communities will not be ripped off as the CMA found happened with the ASDA petrol stations. "