Stonegate 'to axe up to 260 jobs'
A Stonegate spokesperson said that over the last couple of months, the business has been undertaking a strategic review of the organisation to ensure that it is best able to win in the current environment.
This review has resulted in the decision to re-structure the central functions and operations management teams.
The spokesperson continued: “Regrettably, this means that we will enter into a consultation process on proposals which may result in up to 260 roles being made redundant.
“These are difficult decisions to take, and our priority over the coming weeks will be to consult with affected colleagues and to continue to look after their wellbeing."
Delivering profitable growth
The spokesperson added: “Wherever possible, we will avoid redundancies by finding people alternative roles and will ensure that those colleagues who are made redundant are fully supported by the business.
“The group is confident this strategy will best position us to deliver profitable growth.”
This comes after the company revealed it was looking to sell off around 1,000 of its pubs in order to pay down some of its debt, a report by Bloomberg revealed in February.
The TDR Capital owned group looked to raise an estimated £800m from the sale of the pubs, with real estate investment bank Eastdil Secured appointed to advise on the planned sale, was planned to be kicked off in spring, sources told the newswire.
Craft Union
In addition to the impact of the pandemic, the business, like others, has been struggling with increased energy costs and dampened consumer confidence.
Stonegate also recently revealed a “stand-out” performance for its operator-led pub model Craft Union, as like-for-like (lfl) sales rose by 14.7% for the 28-week period to 9 April 2022.
Lfls for the managed division of the business increased by 6.1% for the same reporting period versus 2022.
The leased & tenanted division also traded well, demonstrating consistent growth with lfls up by 5.3%. Total revenue for the period was £904m compared to £827m in the prior year and £1.6bn in the 52 weeks ended 25 September 2022.
