A major chain has revealed that it ‘plans to sell off a 1,000 of its pubs’ following news that some Wetherspoons boozers have shut for good.
In a huge blow to punters, Stonegate - which is behind brands such as Slug and Lettuce and Be At One - is now looking to put some of its pubs on the market.
According to Bloomberg, the pub giant is now looking to scale back, after acquiring a whopping £2.6 billion debt pile.
They have admitted that their "biggest concern" right now is the cost of energy as they have been left unsure how they will pay the bill from April and onwards.
Just before the pandemic, Stonegate became Britain’s biggest pub group after spending nearly £1.3 billion buying rival Ei Group, formerly known as Enterprise Inns plc, which was the largest pub company in the UK and had around 5,000 properties.
Now, in a major turn around the giant, which is owned by private equity firm TDR Capital, it plans to sell 1,000 of its pubs - which is more than a fifth of the total they own - for an estimated £800 million.
This, in turn, will also put thousands of jobs at risk.
News of this comes following reports that chains across the UK have struggled to make up ground lost during the pandemic after it was revealed that many Brits are opting to drink at home.
Many boozers are also factoring in the cost of living crisis, soaring energy bills, persistent labor shortages and high inflation.
Speaking about the plan, Ian Payne, Stonegate’s chairman, said in an interview that: “The biggest concern is energy.
“We know what we’re going to pay in February and March, but we still don’t know what we’re going to pay beyond that.”
His concerns follow that of Wetherspoons bosses Tim Martin, who recently announced that it currently has 35 pubs up for sale across England and Scotland - having already sold ten of its sites.
Chairman Tim Martin said that a decision was made to sell off the pubs due to rising food and energy costs and lack of staff.
Meanwile, pubs across Britain are facing higher beer and food costs from their suppliers, while their customers are being squeezed on all fronts by inflation and the cost of living crisis.
Most recently, pub chain Fuller, Smith & Turner Plc warned that their profits were not as high as before, blaming rail strikes for lower sales before Christmas.
And the average price of a pint has risen from £2.30 in 2008 to £3.95 last year, while in London some pubs charge more than £8.
Stonegate was contacted by The Mirror but was told that they are "not making any comment on the story".
