Latest news with #StonegateGroup
BBC News
28-06-2025
- Business
- BBC News
Chelmsford council disappointed by closures of two night clubs
A city council said it was disappointed after the quickfire announcements that two night-time venues would bar Walkabout, which opened in Chelmsford in 2016, and nearby nightclub Popworld which opened in 2018, will shut this venues in the city's Backnang Square are owned by Stonegate Group, which thanked customers "for their loyalty and support over the years"."It is very disappointing to hear that two established, hard-working and popular venues will soon be closing," said a Chelmsford City Council spokesperson. "Both businesses will be missed by many residents and visitors, and their colleagues in Chelmsford's night-time economy. " The two closures were announced in the space of two days."I think it will be a really big hole in the city's night-time economy," said Marie Goldman, the Liberal Democrat MP for Chelmsford."Bars and restaurants, they come and go, but this has been a feature of the centre of Chelmsford for quite some time now and it seems to have really come out of the blue as well."Goldman said there were still plenty of bars, restaurants and independent venues in the area, and suggested that businesses struggling to turn over a profit was countrywide problem.A Stonegate Group spokesperson said Walkabout would shut on 13 July and Popworld on 2 August."We'd like to thank all our guests for their loyalty and support over the years - it's been a pleasure to welcome you through our doors," they said. Follow Essex news on BBC Sounds, Facebook, Instagram and X.
The Herald Scotland
24-06-2025
- Business
- The Herald Scotland
The recipe for fair work in the dining and drinking sector
'Once again, growth will be distributed unevenly and centred around small industrial clusters that have high barriers to access – hardly a recipe for driving social mobility." Read more: Whether the drinking, dining and entertainment sectors should fall within the remit of this or any industrial strategy is debatable, but it's clear to see why hospitality bosses are feeling left out in the cold. Their businesses are among those hardest-hit by Chancellor Rachel Reeves' Autumn Budget, which is estimated to have increased collective annual costs across the sector by £3.4 billion through a combination of the higher minimum wage, rising national insurance contributions, and reduced business rates relief. Survey data released last week suggests one in three UK hospitality businesses are currently operating at a loss, while six out of 10 have cut jobs and 63% have reduced the number of hours available to staff. More of the same will almost certainly follow. Stonegate Group - the company behind well-known names such as Aberdeen's Slaine's Castle and Triplekirks, Edinburgh's Slug & Lettuce, and The Merchant in Glasgow - is in talks with consulting firm AlixPartners over plans to restructure the business amid rising cost pressures. The potential 150 job losses being suggested will primarily affect head office and central functions, but it is bar and restaurant workers that are leading the exodus from the sector more widely. 'Critical foundational sectors of the economy, like hospitality, leisure and tourism, are central to creating jobs, yet overlooked," Ms Nicholls added. "This is the same approach which led to this year's employer NICs changes hitting part-time, flexible and accessible jobs hardest, while protecting jobs in the industrial strategy." Much of the strain, as it inevitably does, is falling on the workers who remain. Read more: New research published today and financed by The Robertson Trust, a charity dedicated to reducing poverty in Scotland, has found that hospitality employers require better policy implementation to support the fair work practices needed by their staff. The report is part of the Serving the Futures project that has been working directly with employers and people with experience of low-paid work in the hospitality sector to identify changes to address in-work poverty in Scotland. Researchers at the Fraser of Allander Institute and the Poverty Alliance who carried out the work said many employers are hindered by 'factors beyond their control' in the implementation of fair work. These include gaps in transport and childcare provision, which create barriers to work for their staff, along with the impacts of the Covid pandemic, the UK's withdrawal from the EU, and the more recent cost-of-living crisis. 'Our research shows that hospitality employers often want to do the right thing by their employees, but they don't always feel supported by policy to do so," said Christy McFadyen, a knowledge exchange associate with the Fraser of Allander Institute. "If we are to meet the 2030 child poverty targets, the Scottish Government has a role to play in ensuring that housing, childcare and transport policy support the industry and its workers.' Read more: Hospitality is a significant part of Scotland's economy, accounting for about 3% of the country's GDP and, before the pandemic, 8% of its jobs. The project has found that workers in the sector face higher than average risks of experiencing in-work poverty. A third of those spoken to by researchers were on zero-hour contracts, or had no contract at all, while the median hourly pay rate was under the low pay threshold of £11.58. "Low pay and job insecurity have a big impact on households in Scotland," said Dr Laura Robertson, research manager with the Poverty Alliance. "A lack of affordable, accessible childcare and housing, alongside continued high costs of living, is also preventing families from being lifted out of in-work poverty. "The Serving the Future project shows key challenges facing households working in the hospitality sector in Scotland and that both employers and policy makers have a key role in tackling poverty in Scotland." There was widespread concern among workers about a lack of effective regulation and oversight of the hospitality sector, leading to an absence of clear standards that allow exploitation and unfair practices to persist. Staff shortages were leading to many taking on extra hours and duties, creating burnout, stress, and deterioration in work-life balance. This was sometimes the result of a practice known as "clopens", or late closing and early opening. Read more: One worker said: "Sometimes I could finish at twelve at night and be in at ten the next day. That's very common, as well, like 'clopens'. I think they shouldn't be legal." Recommendation for government action, include greater collaboration with the hospitality and tourism industry, along with investment in sustainable and community-led tourism. Employers also need better and more consistent information on best practice, legislative developments, and policy changes. Ditto for training and development opportunities, with greater financial support to back this up. In all it rather reads like what Ms Nicholls at UKHospitality claims is missing from the new industrial strategy, bar one major point: policy measures for lowering energy prices. This will see the introduction of a "British industrial competitiveness scheme" from 2027 that will reduce electricity costs for 7,000 intensive electricity users in the manufacturing sector. 'Lowering energy bills for certain sectors is clear recognition from the government that the energy market is broken and a major barrier to investment,' Ms Nicholls said. 'We now need a clear roadmap and timeline for when the government will fix the energy market for the rest of the economy."
Yahoo
15-06-2025
- 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. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
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
Telegraph
14-06-2025
- Business
- Telegraph
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.
