Core Viewpoint - Stonegate Group is planning to sell over 1,000 pubs to reduce its significant debt burden, potentially raising £1bn ($1.32bn) from the sale [1][2]. Group 1: Financial Situation - The company reported revenues exceeding £1.7bn in 2024 but has over £3bn in borrowings as of September 29, 2024, primarily due to its 2019 merger with Ei [2]. - Stonegate's finance costs reached £455m for the year ending September 2024, exacerbated by higher interest rates and increased wage bills due to national insurance and minimum wage hikes [5]. Group 2: Asset Details - The pubs targeted for sale, known as the "platinum" portfolio, consist of 1,034 sites and are considered some of Stonegate's strongest assets, generating £90m in earnings before interest, taxation, depreciation, and amortisation [2][6]. - The portfolio is entirely freehold and located across England and Wales, with no sites in Scotland [6]. Group 3: Strategic Moves - Stonegate has previously securitized the platinum assets through a £638m loan from Apollo, allowing for the potential sale of these assets without negatively impacting the rest of the business [3]. - The company is considering selling the assets in smaller tranches rather than a single transaction, which may attract interest from private equity buyers [4][6].

Core Viewpoint - The proposed increase in business rates by the Chancellor is expected to jeopardize approximately 120,000 jobs in the retail and hospitality sectors, as businesses face higher costs and potential closures [1][2][4]. Group 1: Impact on Employment - The British Retail Consortium (BRC) and UK Hospitality estimate that hundreds of sites could close due to the business rate changes, leading to around 120,000 job losses [2]. - Retail and hospitality leaders have expressed concerns that the changes will force large "anchor" stores and entertainment venues to shut down, further impacting employment [4]. Group 2: Business Rate Changes - The proposed overhaul of business rates will increase levies on larger premises to alleviate costs for smaller sites, set to take effect next April [2][3]. - Labour argues that the reform aims to revive city centres by leveling the playing field between high street retailers and online giants [3]. Group 3: Industry Concerns - Retail and hospitality executives have called for exemptions from the higher business rates to protect jobs and anchor stores [4][5]. - Tesco and Sainsbury's have warned that increased business rates could accelerate the decline of high street businesses [5]. Group 4: Consumer Spending and Economic Pressure - Businesses are facing additional pressure as consumer spending declines, with retailers reporting a 27% drop in sales year-on-year as of October [6]. - Consumer confidence remains low, exacerbated by caution ahead of the upcoming Autumn Budget [6]. Group 5: Rising Costs - The planned changes to business rates could lead to increased food prices, which have already risen by nearly 5% over the past year [7]. - Retailers are also dealing with higher costs from previous budget measures, including increased employer National Insurance rates and minimum wage [7].

“A corporate approximation of the local pub.” On “The Intelligence”, @TheLoughran explains the surprising success of Wetherspoon pubs in Britain https://t.co/FXtnGN33Ga https://t.co/5HLDh62VhL ...

Many see Wetherspoon as a mere bargain boozer. Its image was not helped by its chairman’s foray into politics. But there is some snobbery in those who deride the pub chain. It is often ahead of the times https://t.co/J4Pw6rOgvH ...