Latest news with #Stonegate
Yahoo
16-06-2025
- Business
- Yahoo
Stonegate plans job cuts as part of restructuring strategy
UK pub company Stonegate Group is set to reduce its workforce as part of a restructuring strategy following increased financial pressures. According to The Telegraph, the company, which operates 4,000 establishments across the country, including the Craft Union and Slug & Lettuce brands, has been collaborating with AlixPartners to streamline operations. While the exact number of job cuts has not been finalised, it is anticipated that up to 150 positions will be eliminated from its head office and central functions. The restructuring will not affect jobs in the pubs and bars, nor lead to any pub closures. The move follows a challenging period for the TDR Capital-owned company. Stonegate has been grappling with significant losses and a substantial debt burden nearing £3bn (around $4bn). The additional financial strain from increased taxes on UK employers in 2025 has compounded the difficulties. Despite revenue growth, Stonegate announced pre-tax losses of £257m in 2023 and £214m in 2024 respectively, due to hefty interest payments on its debts. A spokesperson explained that the job cuts are partially driven by a strategic shift from managed pubs to leased and tenanted ones, which have been more profitable recently. Managed pubs need more oversight and resources, making them less attractive for the company's current goal of returning to profitability. The hospitality sector has been hit with extra costs after UK Chancellor Rachel Reeves raised employers' National Insurance contributions and lowered the payment threshold, which has particularly impacted firms with many lower-paid and part-time workers. This will be Stonegate's second round of job cuts in two years, after making 250 redundancies in 2023. The company is also reassessing rents and supplier agreements as part of its restructuring strategy. TDR Capital previously injected £250m into Stonegate to prevent a debt default, which included refinancing that increased the cost of servicing borrowings from £301m to £450m in 2024. This refinancing allowed Stonegate to extend the repayment deadline for much of its debt to 2029 and invest more in its pubs, with AlbaCore Capital Group acquiring a stake in the process. In early 2025, the pub company announced the reopening of the Spotted Dog in Dorking, following a refurbishment investment. "Stonegate plans job cuts as part of restructuring strategy" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
14-06-2025
- Business
- Yahoo
Britain's biggest pub company to slash jobs amid debt crunch
Britain's biggest pub company is set to cut a raft of jobs as bosses seek to slim down the debt-laden firm following Rachel Reeves's tax raid. Stonegate Group, which runs more than 4,000 pubs across the UK including the Slug & Lettuce and Craft Union brands, has been working with restructuring specialists at AlixPartners over recent months, The Telegraph has learnt. Up to 150 jobs are expected to be cut across the company's head office and central functions. It is understood no decision has yet been made on the exact number of roles under threat. Jobs in its pubs and bars will not be affected and no pubs will close as a result of the restructuring. It comes after a difficult period for Stonegate, which is owned by TDR Capital, the private equity house which also controls Asda. It has lost hundreds of millions of pounds while straining under the weight of a near-£3bn debt pile while higher taxes levied on employers by the Chancellor this year have added to pressures. Despite a rise in revenues in recent years, it reported pre-tax losses of £257m and £214m in 2023 and 2024 respectively as interest payments on its debts pushed it into the red. A Stonegate spokesman said the planned cuts were partly due to a shift away from managed pubs – which it owns and operates itself – towards leased and tenanted pubs, which are rented out to and operated by publicans. The latter have proved more profitable for Stonegate in recent years. Managed pubs also require more resources and head office staff to oversee, making them less appealing to run at a time when the company is trying to return to profit. The spokesman said: 'This, combined with rising costs, particularly after the recent Budget, means we must reorganise our support functions to reflect the shape of our business today. 'We recognise that this is a difficult time and we are committed to supporting our colleagues with care and fairness as we consult with the business on the proposed changes.' Hospitality firms have been lumbered with extra costs after Ms Reeves raised employers' National Insurance contributions and lowered the threshold at which they are paid this year. Bosses have argued the latter has disproportionately hurt hospitality firms because of the number of lower-paid and part-time workers they employ. It will be the second round of job cuts at Stonegate in two years following more than 250 redundancies in 2023. Stonegate has also been reviewing rents and agreements with suppliers as part of restructuring efforts. Last summer, TDR pumped £250m into the company to avoid defaulting on its debts, after the cost of servicing its borrowings rose from £301m to £450m in 2024. This included refinancing. The refinancing gave Stonegate breathing room, allowing it to push the repayment date for much of its debts to 2029. At the time, Stonegate said the deal would allow it to invest more in its pubs. The agreement saw one of its lenders, AlbaCore Capital Group, take a stake in the firm. Domiciled in the Cayman Islands, Stonegate traces its history back to 2010, when TDR bought 333 pubs from Toby Carvery owner Mitchells & Butlers. Its debts ballooned when it bought rival pub firm Ei Group – formerly Enterprise Inns – in a £3bn deal in 2019. The deal completed just before the pandemic forced the nation's pubs shut for months on end. After the pandemic, soaring interest rates heaped pressure on firms with large debts. Stonegate's troubles echo those of TDR-owned Asda, which too has been battling to bring down costs in the wake of its debt-fuelled buyout by the firm and the billionaire Issa brothers in 2021. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scottish Sun
24-05-2025
- Business
- Scottish Sun
Popular pub announces sudden closure with events forced to cancel and future uncertain as owners share update
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A BELOVED pub has closed down after struggling to find a new landlord. The sudden closure of The Rolleston Arms in Swindon has left event organisers desperately searching for new venues. Sign up for Scottish Sun newsletter Sign up 1 The Rolleston Arms needs a new landlord Credit: Google One claimed the pub had lost its licence "due to the actions of the local council and pub company", but that has since been debunked. Swindon Borough Council confirmed The Rolleston Arms had not lost its licence and that the closure is temporary. A spokesperson for Stonegate, the company that owns the pub, said: "The pub is currently closed until further notice while we look to recruit a new publican to run the premises. 'We're also going to be carrying out repair work to the site before it eventually reopens under a new publican, so it will be closed for a little while.' Stonegate also echoed Swindon Borough Council and stressed that there was no issue with the licence. This isn't the first time the pub has been closed, much to the woe of thirsty punters. It's also seen several landlords come and go. It was previously called Commercial Road Tavern and was run by Violet McLaren, who sold it in 2023. It was taken over by Daniel Harrison, but by January 2024, it was boarded up. In June that year, Charlotte Thornton and Craig Waters took over the venue. Larry Lamb reveals his Channel 5 show with his son has been AXED after he quit TV for a totally different job But they have since left the business. In February this year, The Rolleston Arms was closed again due to "unforeseen issues" with the cellar cooling system. The Sun has approached Stonegate for comment. The Rolleston Arms is far from the only British pub struggling with the uncertain times of the hospitality industry. A string of beloved pubs are closing their doors, with punters and landlords alike left heartbroken as pressures in the hospitality industry hit boiling point. In East London, the historic Gun pub in Homerton has shut down after 160 years of service. Once a bustling local favourite, the venue was brought back to life in 2014 following a major revamp by landlords Nick Stephens and his partner Hanna-Sinclair Stephens. Despite surviving the Covid crunch thanks to a heroic crowdfunding campaign that raised over £30,000 in a single day, the couple say the pub has now become 'unsustainable'. 'It was hugely popular, but we just couldn't keep going,' Nick said. 'The capacity was only 90 — the numbers just didn't add up anymore.' Meanwhile, in Nottingham, The Emerald, a vibrant Indian pub and sports bar, has also called time, just two years after opening. Dubbed a 'labour of love' by its owners, The Emerald quickly became a community favourite for curry lovers and cricket fans alike. But behind the scenes, soaring costs and the departure of a key business partner created what they described as 'emotional, financial and operational strain'. In a heartfelt post, they thanked loyal customers: 'The Emerald was always more than just a pub—it was a cultural space… Thank you, from the bottom of our hearts.' Social media lit up with tributes from heartbroken regulars. One wrote: 'It was more like home to us. And even award-winners haven't been spared, a Midlands pub, hailed as the region's best and a finalist for Desi Grill of the Year 2024, has also gone under, despite its short-lived success. The wave of closures paints a grim picture for the UK pub scene, already battered by the pandemic and now facing soaring prices for rent, business rates and barrels.
The Sun
24-05-2025
- Business
- The Sun
Popular pub announces sudden closure with events forced to cancel and future uncertain as owners share update
A BELOVED pub has closed down after struggling to find a new landlord. The sudden closure of The Rolleston Arms in Swindon has left event organisers desperately searching for new venues. 1 One claimed the pub had lost its licence "due to the actions of the local council and pub company", but that has since been debunked. Swindon Borough Council confirmed The Rolleston Arms had not lost its licence and that the closure is temporary. A spokesperson for Stonegate, the company that owns the pub, said: "The pub is currently closed until further notice while we look to recruit a new publican to run the premises. 'We're also going to be carrying out repair work to the site before it eventually reopens under a new publican, so it will be closed for a little while.' Stonegate also echoed Swindon Borough Council and stressed that there was no issue with the licence. This isn't the first time the pub has been closed, much to the woe of thirsty punters. It's also seen several landlords come and go. It was previously called Commercial Road Tavern and was run by Violet McLaren, who sold it in 2023. It was taken over by Daniel Harrison, but by January 2024, it was boarded up. In June that year, Charlotte Thornton and Craig Waters took over the venue. Larry Lamb reveals his Channel 5 show with his son has been AXED after he quit TV for a totally different job But they have since left the business. In February this year, The Rolleston Arms was closed again due to "unforeseen issues" with the cellar cooling system. The Sun has approached Stonegate for comment. The Rolleston Arms is far from the only British pub struggling with the uncertain times of the hospitality industry. A string of beloved pubs are closing their doors, with punters and landlords alike left heartbroken as pressures in the hospitality industry hit boiling point. In East London, the historic Gun pub in Homerton has shut down after 160 years of service. Once a bustling local favourite, the venue was brought back to life in 2014 following a major revamp by landlords Nick Stephens and his partner Hanna-Sinclair Stephens. Despite surviving the Covid crunch thanks to a heroic crowdfunding campaign that raised over £30,000 in a single day, the couple say the pub has now become 'unsustainable'. 'It was hugely popular, but we just couldn't keep going,' Nick said. 'The capacity was only 90 — the numbers just didn't add up anymore.' Meanwhile, in Nottingham, The Emerald, a vibrant Indian pub and sports bar, has also called time, just two years after opening. Dubbed a 'labour of love' by its owners, The Emerald quickly became a community favourite for curry lovers and cricket fans alike. But behind the scenes, soaring costs and the departure of a key business partner created what they described as 'emotional, financial and operational strain'. In a heartfelt post, they thanked loyal customers: 'The Emerald was always more than just a pub—it was a cultural space… Thank you, from the bottom of our hearts.' Social media lit up with tributes from heartbroken regulars. One wrote: 'It was more like home to us. And even award-winners haven't been spared, a Midlands pub, hailed as the region's best and a finalist for Desi Grill of the Year 2024, has also gone under, despite its short-lived success. The wave of closures paints a grim picture for the UK pub scene, already battered by the pandemic and now facing soaring prices for rent, business rates and barrels. What is happening to the hospitality industry? By Laura McGuire, consumer reporter MANY Food and drink chains have been struggling in recently as the cost of living has led to fewer people spending on eating out. Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation. Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny's closing branches. Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs. Pizza giant, Papa Johns is shutting down 43 of its stores soon. Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans
Scottish Sun
29-04-2025
- Business
- Scottish Sun
Popular UK pub chain with Glasgow branches to hike beer prices
Find out how much your favourite drinks will cost Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A POPULAR UK pub chain with several Glasgow branches is set to hike beer prices in a fresh blow for punters. Stonegate Group, which owns boozers such as Slug & Lettuce, Walkabout and Popworld, says the change will come into force from Friday, May 2. Sign up for Scottish Sun newsletter Sign up 1 Stonegate Group is set to hike beer prices Credit: Roddy Scott Their portfolio also includes The Merchant, Home, The Ark and The Howgait in Glasgow, among others. Bosses say the move follows "significant cost pressures and challenges" affecting the hospitality industry. The sector was hammered by closures during the Covid-19 pandemic and was immediately dealt another blow by supply issues and the cost of living crisis. A spokesperson for Stonegate said: "Our annual price review this year reflects the significant cost pressures and challenges faced by our sector over the last 12 months. "We are absolutely committed to supporting our publicans, enabling them to continue to play the vital role in the communities they serve." Stonegate is hiking beer and other booze selling prices by 4% for its leased and tenanted pubs. Boozers will likely then have to push this cost onto drinkers, which could add an extra 15 to 20p onto drinks. For example, a pint like Hofbräu Original Lager that typically costs £5.50, could now cost £5.75. Similarly, the Thistly Cross Traditional Sparkling Apple Cider that would usually sell at £5, could increase to £5.20. A number of pubs are also warning they will have to hike prices for customers this year after the Government's Autumn Budget. First look inside new Glasgow pub with a live train timetable board and hi tech cocktail machine Employer National Insurance Contributions (NICs) and the national minimum wage are both rising. But businesses have cautioned this will force them into upping the price of drinks as they try and absorb the extra costs.
