Huge chain with 37 Lancashire pubs struggles with £2bn debt

Lancashire News

Huge chain with 37 Lancashire pubs struggles with £2bn debt
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The company operates Slug and Lettuce, Walkabout, Popworld and Reflex bars alongside several smaller standalone venues

Concerns have been raised for the future of 37 pubs and bars across Lancashire after a debt-stricken pub chain revealed there was 'uncertainty' about its ability to continue.

It has yet to secure new loans to plug the hole in its finances, despite repayments being due as early as June next year. Talks with potential lenders are said to be under way.The company has 4,000 venues, including 37 across Lancashire and nearly a dozen in Blackpool alone. Stonegate CEO David McDowall, previously chief operating officer for Brew Dog, has said the company has seen an increase in profits and that employees 'are not at risk'.

Stonegate's company accounts revealed a 'material uncertainty' that 'may cast significant doubt on the company and group's ability to continue as a going concern'. Mr McDowall said: "I am really pleased with the performance of the business in 2023, which included a sector-leading Christmas trading period.

"This is testament to the hard work of our people and partners, but also to the success of our on-going initiatives to increase profitability across our portfolio of brands and venue formats. Our performance gives me real confidence in the future and excitement in seeing our strategy come to fruition.

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