Stonegate addresses claims Sussex pubs ‘at risk of closure’

The union has warned that venues owned by pub chain Stonegate, which includes brands like Yates and Walkabout, could face an uncertain future as owner TDR Capital seeks to refinance £2.6 billion in debt.

Although the boss of TDR Capital Gary Lindsay told MPs he was “confident” the company could be refinanced this year, the GMB has raised concerns that refinances could result in crippling payments to service the debt.

The union has claimed that huge interest payments on TDR Capital debt have caused cost pressures at Asda, also owned by the company, resulting in cuts in hours for staff.

A total of 107 Stonegate pubs across Sussex could face closure, the union has claimed, with 650 “at risk” across South East England.

Among those under threat in Brighton, according to the GMB, are Charles Street Tap in Marine Parade, Walkabout in West Street, Popworld in West Street, The Druids Arms in Ditchling Road, and The Black Horse in Church Street.

Justin Bowden, GMB Southern 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 the 650 local 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.”

A spokesman for Stonegate Pub Company said: “We continue to invest in our pubs and our people, in particular supporting local pubs which play such a key role in their communities.

“Our pub business remains very resilient despite the challenges our industry faces, with 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 in our ability to refinance at the appropriate time.”