Popular Lancaster and Morecambe pubs ‘at risk’ as owners face £2.6bn debt

Stonegate faces £2.6bn of debt but has insisted the business "remains very resilient" and it is "very confident" in its ability to re-finance "at the appropriate time".

With more than 4,500 venues across the country, Stonegate is one of the UK's largest pub companies and its brands include Slug & Lettuce, Yates and Walkabout.

In Lancashire its 37 venues include the Kings Arms in Morecambe, The Crafty Scholar in Lancaster, The Fairhaven in St Annes and the Wilpshire Hotel in Blackburn.

GMB Union has raised concerns about these pubs, saying that they are at risk due to the £2.6bn debt accrued by Stonegate's parent company TDR Capital.

Gary Lindsay, Boss of TDR Capital which also owns supermarket giant Asda, told the Business and Trade Select Committee he was "confident" £2.6 billion of debts in the Stonegate Pub Company

could be refinanced this year.

However, GMB said this may be difficult due to high interest rates and raised concerns that attempts to refinance could lead to "crippling" payments required to service the debt.

Justin Bowden, GMB Regional Secretary, said: "The position with the Stonegate Pub Company’s finances is lacking in transparency, with the ultimate holding company based in the Cayman Islands.

TDR Capital must be accountable to local people and they have a duty to safeguard 4,500 pubs which are vital community assets.

“TDR Capital must be accountable to local people and they have a duty to safeguard 4,500 pubs which are vital community assets.

“GMB’s experience with private equity owners has been, and continues to be, wholly negative.

“We fear for the future of our local supermarkets and pubs in the hands of their private equity owners."

The Stonegate venues in Lancaster, Morecambe, Garstang and Kirkby Lonsdale that may be at risk:

*Kings Arms, High Street, Garstang

*The Stork Hotel, Corricks Lane, Lancaster

*The Pendle Witch, Penny Street, Lancaster

*The Penny Bank, Penny Street, Lancaster

*The Crafty Scholar, Church Street, Lancaster

*Chieftain Hotel, Pedder Street, Morecambe

*Kings Arms, Marine Road, Morecambe

*The Snooty Fox, Main Street, Kirkby Lonsdale.