Stonegate Moves to Streamline Business Amid Tough Trading Climate

Stonegate Group has reportedly brought in external advisers as it looks to simplify its corporate structure in response to ongoing pressures across the hospitality sector.

Britain’s largest pub operator is understood to have appointed restructuring specialists FRP Advisory to help deliver a wide-ranging reorganisation of the business. Reports suggest the move is aimed at reducing complexity within the group following years of rapid expansion through acquisitions.

In communications circulated to landlords, Stonegate is said to have acknowledged that its corporate framework has become increasingly complicated, with the group now operating across more than 90 separate entities. The company reportedly indicated that planned changes would have direct implications for parts of its pub estate.

As part of the wider transformation programme, it is believed Stonegate is considering shifting a significant number of its managed and directly operated pubs into tenanted or leased models, allowing sites to be run independently by publicans.

The reported appointment of advisers follows earlier market speculation that the Slug & Lettuce owner was exploring options to sell a substantial portion of its estate, potentially involving more than 1,000 pubs, in a deal that could be valued at around £1bn.

Stonegate has also already been active in disposing of individual sites. In September last year, the group placed 23 pubs on the market, including well-known London venues such as the Dog and Duck in Walthamstow and the Crown and Anchor in Bromley.

The company’s long-term strategy has previously been reported to include the potential sale of a large number of pubs as it seeks to reshape the business for future sustainability.

Backed by private equity firm TDR Capital, Stonegate was established in 2010 with a portfolio of 333 pubs. Following a series of acquisitions — most notably the takeover of Ei Group in 2020 — the operator now controls more than 4,500 sites nationwide, trading under brands including Slug & Lettuce, Be At One and Craft Union.