Slug and Lettuce chain's future in doubt over massive £2bn debt

Concerns have been raised over the future of thousands of pubs, including 80 in Greater Manchester, after it emerged that the UK's largest pub chain Stonegate is grappling with a huge £2.3bn debt. The group, which owns Slug and Lettuce, also operates more than 4,400 other hospitality venues in the UK, including Be At One and a series of smaller bars - but has warned that there is a risk it might not be able to service its debts.

According to Stonegate Pub Company's latest business filings, there is a “material uncertainty that casts doubt on the company’s ability to continue" as a result of this huge pile of debt, which could shutter venues across the country. Although the company has a plan for refinancing the debt, no funds have yet been raised, casting further doubt on its survival.

The report stated: "Since the refinancing plans haven't been executed, there is an indication that a material uncertainty exists that may cast significant doubt on the company and group's ability to continue as a going concern," reports the Mirror.

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This means the group "may be unable to realise their assets and discharge their liabilities in the normal course of business". After acquiring Ei Group - formerly known as Enterprise Inns - in 2019 for £1.3 billion, Stonegate became the UK's largest pub operator.

The transaction also included taking on £1.7 billion in debt. Since at least February, the company has been seeking ways to refinance its debts, with reports from Bloomberg indicating that Evercore bankers and Kirkland and Ellis lawyers have been appointed to assess the options.

Owned by the Cayman Islands-registered TDR Capital, which also