Berkshire pubs at risk of closure as owner attempts to refinance

Stonegate pub group operates a host of community pub chains across the country including Slug and Lettuce, Yates and Walkabout

The boss of TDR Capital, Gary Lindsay, which owns Stonegate Group also owns the supermarket giant Asda and is currently dealing with the increased interest payments on the massive debt.

GMB Union has expressed concern for the employees that refinancing could lead to crippling payments to service the debt due to increasing interests rates.

Among the 650 pubs throughout the UK, 71 are spread across Berkshire. Six pubs are in Bracknell Forest, 17 are in Reading, one sits in Slough, 18 are in West Berkshire and, 17 are in Windsor and Maidenhead and nine are in Wokingham.

Despite worries about the survival of community pubs within the Stonegate group, Lindsey told the Business and Trade Select Committee on Tuesday [9 January] he was ‘confident’ £2.6 billion of debts in the Stonegate Pub Company could be refinanced this year.  

Huge interest payments on TDR Capital’s debts have already resulted in cost pressures at Asda, resulting in cuts in hours for staff, cutting corners on health and safety and a rise in a toxic culture of bullying and harassment. 

Justin Bowden, GMB Southern Regional Secretary, said: "The problems we are experiencing with private equity-owned Asda at Gosport are not confined to just that store.  

“We have experienced similar problems across the stores in the south of England.  These problems are exacerbated by the fact that GMB, as the union for Asda staff, has never met the hands-on private equity owners since they took over the business.  

“They boast that they are hard on shareholders, but they keep well away from the results of their hands-on initiatives.  They have refused to explain to GMB gaps in the company’s accounts - saying that the 18 companies in their opaque structure are not GMB business.  Quite simply, this is not good enough and not acceptable.  

“The position with the Stonegate Pub Company’s finances is equally 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.  

“We are far from reassured that our members and our communities will not be ripped off as the CMA found happened with the ASDA petrol stations. " 

A spokesperson from Stonegate Group 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 re-finance at the appropriate time.”