Exclusive – Stonegate set to test market with circa 300-strong pub portfolio: Stonegate Group, the UK's largest pub company, is set to test the market with a package of circa 300 pubs, Propel has learned. The pubs are understood to be part of the 1,034-strong “platinum” package Stonegate has been exploring options for, including a further refinancing as well as partial or full sale. It is understood Stonegate is moving forward with the next stage of the “platinum” sale process, with this initial smaller package. However, it is thought that no final decision has been made on what option or options the business explores regarding the “platinum” portfolio, and that with an improvement in the debt market, a further refinancing hasn’t been ruled out. Propel understands Stonegate is working with advisory firm Eastdil on its options for the package of pubs. Earlier this year, Stonegate appointed advisers to help it to streamline its structure. The company, which has more than 4,300 sites in the UK, is working with FRP Advisory as it seeks to implement a series of strategic measures, including simplifying the company's structure, which could include a restructuring plan for circa 700 sites. In a letter to landlords, Stonegate said the “reorganisation has direct implications within our estate” but that it is committed “to a constructive and consensual approach with our landlord community”. “As you are aware, the trading environment remains challenging across the hospitality sector,” the letter said. “Stonegate has not been immune to these pressures, with like-for-like profit across our managed estate declining 22% compared with pre-covid levels.” The letter referred to the company's structure, which, “shaped by historical acquisitions, has become overly complex with 92 entities”, adding the strategic measures will “reinforce the group's long-term resilience and sustainability”. As part of a transformation plan being carried out by Stonegate chief executive David McDowall, the business is converting hundreds of its company-run managed pubs into tenanted and leased houses, which are rented and run by publicans, reducing the company's exposure to rising labour costs. The company said this would result in a more focused managed estate and larger leased and tenanted business. Stonegate features in the Premium Club Turnover & Profits Blue Book, the latest edition of which was sent to Premium Club subscribers today (Friday, 13 March) and features 1,244 companies. Stonegate’s turnover of £1,747,000,000 is the ninth highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.