Union voices concerns over the future of local pubs

GMB Union made that warning about the more than 250 pubs which are all owned by Stonegate Pub Company, which include The Cutting Room, on St Mary’s Way, The Fox and Hounds at Knossington and The Plough at East Goscote.

The company, which is owned by private equity group TDR Capital, which also owns Asda, stated in its annual report this month that there was no certainty it could refinance its debts by the scheduled deadline of July next year.

Stonegate’s CEO has released a bullish statement assuring employees and customers that it would be able to navigate through its financial challenges and that there was no immediate threat to the business.

This followed TDR’s strong assurances to a parliamentary select committee in January that the debts could be refinanced.

But GMB Union, which represents many staff working in the Stonegate business, has written to Liam Byrne MP, chair of the Business and Trade Select Committee, asking him to recall TDR bosses in light of the ‘profit warning’ made in the annual report.

In a statement today (Thursday), Nadine Houghton, GMB’s National Officer, said: "TDR bosses are private equity gamblers - playing fast and loose with people’s jobs and lives.

“When their risky ventures go wrong, they swan off to their next project, leaving workers and communities to pick up the pieces.

“Now, hundreds of much loved pubs across the East Midlands are now in serious danger of pulling their last pint.

“It’s a disgrace.”

Stonegate is one of the largest pub companies in the UK, with more than 4,500 pubs and more than 19,000 workers, including brands like Slug and Lettuce, Yates and Walkabout. The chain has 255 pubs across the East Midlands.

Its annual report states: "Since the refinancing plans haven’t been executed, there is an indication that a material uncertainty exists that may cast significant doubt on the company and group’s ability to continue as a going concern."

But David McDowall, CEO of Stonegate, said he was optimistic about the firm’s future prospects.

He said: “I am 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.

"Our performance gives me real confidence in the future and excitement in seeing our strategy come to fruition.

“With a summer of sport on the horizon, and the Euros and T20 World Cup fast approaching, we are looking forward to building on this momentum in the months ahead.

“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 valued employees and partners that venues are not at risk as a result of this process.”