Key Highlights
- Stonegate Group plans to sell more than 1,000 of its venues as it battles with billions of pounds in debt.
- The company owns the Slug & Lettuce and Be At One chains, managing over 4,000 venues in total.
- Stonegate attempted a similar sale in 2023 but was unsuccessful, instead refinancing 1,000 of its pubs with Apollo.
- The company suffered a loss of £214 million in 2024 after facing high interest rates and increased costs due to the pandemic.
Background on Stonegate Group’s Financial Struggles
In November 2025, major British pub chain Stonegate Group announced plans to sell more than 1,000 of its venues as it battles with significant debt. The company owns the Slug & Lettuce and Be At One chains, operating a total of over 4,000 venues. Stonegate’s attempt at a similar sale in 2023 was unsuccessful; instead, the company managed to refinance 1,000 of its pubs with Apollo.
Struggles and Transformation Plan
The latest financial struggles for Stonegate stem from a series of challenges. In 2019, the company completed a mega merger with rival company Ei, making it Britain’s largest pub chain. However, this deal left the company with substantial debt just months before the pandemic forced pubs to close.
Since the end of the pandemic, high interest rates, increased employee costs, and higher food and energy bills have further weighed on Stonegate.
David McDowall, Stonegate’s chief executive, said last year that the company is implementing a “transformation plan” aimed at returning it to profitability. This strategy includes converting hundreds of pubs run by Stonegate into tenanted and leased venues, which are rented out to publicans. As part of this plan, the pub chain put 23 locations up for sale in September.
Industry Context and Implications
The struggles faced by Stonegate reflect broader challenges within the UK pub industry. Many bar and pub chains have been reeling from the impact of the pandemic and the subsequent cost-of-living crisis, leading to increased costs for everyday goods that consumers can no longer afford to spend as much on entertainment and social activities.
For example, Oakman Inns & Restaurants entered administration in 2025, putting 19 sites at risk of closure. The company has blamed the hangover from the pandemic and elevated interest rates for its troubles.
Similarly, Officina 00 closed three locations across Covent Garden, Fitzrovia, and Old Street due to financial pressures.
These challenges have led to an increase in pub prices as companies attempt to offset rising costs. The chief executive of Fuller’s said the group had increased the price of a pint by 10p after being hit with £8 million in extra costs.
Conclusion
The situation faced by Stonegate Group is emblematic of broader financial struggles within the UK pub industry. As debt burdens and operational costs continue to rise, many companies are exploring options such as asset sales to stay afloat. The outcome of these efforts will not only affect the future of individual pubs but also the wider landscape of public entertainment in the United Kingdom.
