The pub company, which has more than 4,300 sites in the UK, has appointed restructuring firm FRP Advisory as works to “reinforce the group’s long-term resilience and sustainability”.
In a letter to landlords seen by MCA, Stonegate said some of the strategic measures it is taking – which has already seen the group converting some of its managed pubs into leased and tenanted sites – “has direct implications within our estate”.
The group said it was committed to a “constructive and consensual approach with our landlord community”.
Challenging environment
“As you are aware, the trading environment remains challenging across the hospitality sector,” the letter said. “Stonegate has not been immune to these pressures, with like-for-like profit across our managed estate declining by 22% compared to pre-Covid levels.”
The letter also referred to the company’s complex structure which has been shaped by historical acquisitions, including the acquisition of Ei Group – which completed in March 2020.
Stonegate said that with 92 entities at present, it expects the measures to support the accelerated transition from a fully managed estate to a landlord and tenanted model.
A spokesman for the company told MCA: “Stonegate has a significant number of corporate entities as a legacy of the group’s M&A strategy. We are uniting several of these entities to reduce the associated administrative burden.”
More focused
In November 2025, Stonegate said it was considering selling more than 1,000 of what it described as its ‘Platinum portfolio’ of sites, to pay down some of its £3bn debts, once again put the spotlight on the group’s substantial borrowing.
Meanwhile, in August last year the group announced it had converted 200 managed pubs to its leased and tenanted and operator-led (Craft Union) models.
Over the past two years, Stonegate has reshaped its 4,300-strong estate using data, insights and local market knowledge to match each pub with the most effective operating model.
The strategy is delivering an average profit uplift of £110,000 per pub and created a “leaner, more focused” managed estate, which now stands at 550 from 800 two years ago, it said.
- This story originally appeared in The Morning Advertiser’s sister publication MCA here.
