A union is warning that increased interest payments on massive debt owed by TDR Capital could lead to the loss of up to 20 pubs across the Isle of Wight. Stonegate-owned pubs across the South East, including here on the Island, could be at risk as private equity parent company TDR Capital seeks to refinance £2.5billion of debt, according to GMB Union. Gary Lindsay, boss of TDR Capital, which also owns supermarket giant Asda, told the Business and Trade Select Committee on Tuesday that he was ‘confident’ £2.6billion of debts in the Stonegate Pub Company could be refinanced this year. However, with current high interest rates, GMB Union is concerned refinancing could lead to crippling payments to service the debt. Huge interest payments on TDR Capital’s debts have already resulted in cost pressures at Asda, resulting in cuts in hours for staff. This recently led to a vote for strike action at the Gosport store. Stonegate has 20 pubs on the Isle of Wight:
| White Hart | Havenstreet |
| Fleming Arms | Binstead |
| Vine Inn | St Helens |
| Sun Inn | Calbourne |
| White Lion | Arreton |
| Pier View Hotel | Cowes |
| Anchor Inn | Cowes |
| Red Lion | Freshwater |
| Slug & Lettuce Isle of Wight | Newport |
| The Hogshead | Newport |
| Castle Inn | Newport |
| Wheatsheaf Hotel | Newport |
| Fever Isle Of Wight | Newport |
| The King Lud | Ryde |
| Horse & Groom | Ningwood |
| New Inn | Shalfleet |
| Wheatsheaf Inn | Yarmouth |
| Falcon Hotel | Shanklin |
| Woodmans Arms | Wootton |
| Griffin | Godshill |
Justin Bowden, GMB Southern Regional Secretary, has said:
“The problems we are experiencing with private equity-owned Asda at Gosport are not confined to just that store. We have experienced similar problems across the stores in the south of England. “These problems are exacerbated by the fact that GMB, as the union for Asda staff, has never met the hands-on private equity owners since they took over the business. They boast that they are hard on shareholders, but they keep well away from the results of their hands-on initiatives. “They have refused to explain to GMB gaps in the company’s accounts – saying that the 18 companies in their opaque structure are not GMB business. Quite simply, this is not good enough and not acceptable. “The position with the Stonegate Pub Company’s finances is equally 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 the 650 local 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. “We are far from reassured that our members and our communities will not be ripped off as the CMA found happened with the ASDA petrol stations. “
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A spokesperson for Stonegate Pubs has said:
“We continue to invest in our pubs and our people, in particular supporting local pubs which play such a key role in their communities. “Our pub business remains very resilient despite the challenges our industry faces, with good like-for-like sales growth across the group. “Following our recent successful financing announced in December as well as strong recent trading, we are well placed to deliver on our longer term objectives and we are very confident in our ability to re-finance at the appropriate time.”
Pretty much every pub on island then lol
This is a non-story because: “Gary Lindsay, boss of TDR Capital, which also owns supermarket giant Asda, told the Business and Trade Select Committee on Tuesday that he was ‘confident’ £2.6 billion of debts in the Stonegate Pub Company could be refinanced this year.” So the headline is just scaremongering. However, there are some pretty crap pubs on that list.
The refinancing deal could include offloading some assets.
There is no mention of that in the article. You are just making it up.
Still stealing my user name I see.
How sad.
Sorry everyone but I do have this split personality issue that recently surfaced again. Bear with us.
New Inn in Shalfleet already closed!
How do you get into debt of £2.6billion ?. Clearly not a good business model. Most worrying for a few thousand in debt.
It was built up mainly during Covid when the company had almost zero income.
Why almost zero income? The pubs were still paying full rent.
Most companies run on debt, the company I work for has £4.6 billion of debt and is part owned by Macquaries who also own Wight link. They make huge profits on there interest payments on the debt, in this case another company or companies will take on the debt and charge a higher interest rate on it which will be passed down to the companies in the portfolio it’s taking over.
Most of our pensions are run and profit from this, however it does often all go to doo doo like in 2008.
Don’t worry, the lefty union is on the case…
Newport might get a bit quieter at the weekends then…
Your boring aren’t you, young people just want to have fun, then there is people like you complaining all the time… what did you do from 18 into your 20s be boring and moan cause other people drink and have fun.
Just because it’s not for you or you don’t do it anymore… don’t complain that other people want to go to pubs and clubs on weekends… if you don’t like it move somewhere quieter plenty of those places on the island
Let’s blame covid for everything. Pubs are too expensive and if they are then people will not go in them. A pub is NOT a valuable community asset either, so stop latching on to the sausage seely catchphrase.
Hmmm your pretty boring too aren’t you… actually some pubs on the island are not expensive… Wetherspoons and hogshead being one of them.. A pub IS a valuable place for the community because otherwise you would just have loads of people drinking in the streets, fields, beach’s, and a pub is a much safer place to do so, also pubs have cheaper food, good place to catch up with friends, your just making these silly little comments because your quite simply boring…
Oh dear have I rattled your cage. If you have to go to a pub and meet “friends” then that is pretty sad, why not invite them round your place for a drink and a chat. Thumbs ups for me and a few downs for you, says it all really.
Maybe you need to think about the fact not everyone likes to have people in their homes, or there’s other people who live in their home who don’t want to have other people around.. you didn’t really think about that before you snapped back did you…
Cheap food!
you havent been to the weatsheaf in Yarmouth,or the red lion have you!
a pint is £7!
two gobfulls of poncey grub for £20
only cheap so called food is weatherspoons.
Woah woah woah, did I mention the pubs you just said, no I didn’t…
I’ve said this now for 15 years or more that landlords that are brewery tied end up working 60 hours a week basically making money for the pub company. We’ve seen it all too often with keys being handed back after enthusiastic couples with all good intentions find out sadly that if they improve the wet trade and the overall turnover/profits the rent increases. At least Dick Turpin wore a mask when he robbed you!
I wrote to the Isle of Wight council back in 2012 to be brave and bold and look to purchase the real estate from the remaining 63 pubs that were owned by Whitbread, Punch Taverns, Victoria Inns, Enterprise and a couple of others at the time. The council could then look sensible 10 year loans.. to be continued..
Continued.. The publicans would have a real incentive to work at the business and have the opportunity to buy the house back as a freehold and then own the bricks and mortar. The other advantage is that from day one they would be free of tie in and could buy there wet from any brewery so there margins would be significantly better from the first pint that they pour. The covenant in all contracts would be that the landlords could only sell the pub on as a freehold and never back to a national brewery chain. The Island could have a thriving pub trade moving forward as costs could be controlled.
Sadly it was a bog standard reply back from the council saying the inevitable.. “We do hear what you say and can understand the frustrations..”
I think the White Lion in Arreton has already closed – there doesn’t seem to be much activity there at the moment. And the Fleming Arms was re-branded as the Binstead Arms in 2023!
Red lion and wheatsheaf in yarmouth,both wont be missed,massively overpriced poncey food,and “beer”the dufus that runs both wont be missed!
Isn’t the Sloop also Stonegate? I had no idea they owned all these other premises!