Edinburgh bars: Seven Edinburgh pubs 'at risk' as parent company reveals £2.6 billion debt

Union warns owners face ‘crippling’ payments to service their debts.

Seven Edinburgh pubs are among dozens potentially at risk of closure, a union has warned.

GMB Union has said it fears Stonegate pubs in the UK could be under threat, as parent company TDR Capital is in a bid to refinance £2.6 billion of debt.

Amongst a UK-wide list of pubs owned by Stonegate distributed by GMB Union 44 are in Scotland, including Edinburgh’s Slug & Lettuce at George Street and the Omni, Finnegans Wake, The Chanter, Amber Rose, Hanover Tap and The Southsider.

Finnegan's Wake is one of seven pubs in Edinburgh run by Stonegate

Stonegate one of the largest pub companies in the UK also owns Glasgow’s The Merchant and Aberdeen’s Slaine’s Castle and Triplekirks,

The Union has claimed the company’s finances ‘lack transparency’ with the ultimate holding company based in the Cayman Islands.

Gary Lindsay, boss of TDR Capital which also owns supermarket giant Asda, said on Tuesday 9 January he was ‘confident’ £2.6 billion of debts in the Stonegate Pub Company could be refinanced this year.

But GMB Union is concerned that refinancing could lead to crippling payments 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. 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.”

A Spokesman for Stonegate told the Evening News: “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.”