More than 4,500 pubs including ones across region at risk as owner seeks to refinance

Gary Lindsay, boss of TDR Capital which also owns supermarket giant Asda, told the Business and Trade Select Committee on Tuesday that he was "confident" £2.6 billion of debts in the Stonegate Pub Company could be refinanced this year.

With current high interest rates, the union is concerned refinancing could lead to crippling payments to service the debt.

Solihull-based Stonegate is one of the largest pub companies in the UK, with more than 4,500 pubs and more than 19,000 workers, including brands like Slug and Lettuce, Yates and Walkabout. It has pubs across the Black Country, Shropshire, Staffordshire and Worcestershire.

They are a mixture of managed, leased and tenanted pubs.

Justin Bowden, GMB 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 4,500 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."

Stonegate said its pub business remains very resilient despite the challenges the industry was facing.

It added that there was 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 of our ability to refinance at the appropriate time," the company said.

Stone gate was created in 2010 with the purchase of 333 former M&B pubs. It bought rival Ei in March 2020 for £1.27 billion.