A PUB company that owns multiple sites across Reading and Wokingham boroughs says a union is misleading people by suggesting its venues could be at risk of closure.
Stonegate, which operates multiple brands and venues including the Walkabout in Wiston Terrace, The Pond House on Oxford Road, Popworld on Friar Street and Wokingham’s The Station Tap, has been refinancing the business, and says there has been a significant improvement in its profitability after a strong Christmas period.
In its annual report, Stonegate’s directors warn that a £2.3 billion debt is due in July next year, and there was a risk it could not be refinanced. In this scenario, “the Group would not have the ability to repay it when it falls due”.
Directors state that plans are being formulated to refinance the debt, but these haven’t been executed at the date of approval of these financial statements, hence the warning: “a material
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern for the going concern assessment period, and therefore that the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.”
The GMB union says it has written to Lian Myrne MP, chair of the Business and Trade Select Committee in parliament, asking him to recall Stonegate’s owners from private equity firm TDR bosses, to discuss the issue.
The Union says there are more than 4,500 pubs in Stonegate’s portfolio, and employs more than 19,000 people, and the warning in the report gives them uncertainty.
Nadine Houghton, GMB National Officer, said: “TDR bosses are private equity gamblers – playing fast and loose with people’s jobs and lives.
“Hundreds of much-loved pubs across the South East are now in serious danger of pulling their last pint. It’s a disgrace.”
This is not how Stonegate feels, saying the investment from TDR Capital has been positive for them.
A spokesperson for Stonegate, said: “We are really pleased with the performance of the business in 2023, which included a sector-leading Christmas trading period.
“We have delivered a rise in revenue and a significant increase in profitability.
“We have been very clear that we continue to work towards achieving our long-term balance sheet goals, with the successful refinancing of a portion of our estate in December marking a significant strategic step towards this.
“We would also like to assure our employees and partners that no venues are at risk as a result of this process.”
They continued: “TDR Capital has been and continues to be a supportive investor in Stonegate – developing the business over the last 14 years into the UK’s largest pub company with 4,500 great venues across the country.”
