The private equity owner of some of Aberdeen's most popular pubs has pumped £250million into the company to avoid defaults on its debt pile.
As part of a refinancing of Stonegate, which has a £3billion debt pile, TDR Capital has given up a stake in the pub chain to one of its lenders.
Stonegate runs more than 4,000 pubs across the UK, including some of Aberdeen’s most well-known boozers including the Bobbin, the Foundry, Murdos, Slains Castle and Triple Kirks.
It also owns the Black Dog, which is located in Bridge of Don.
Stonegate warned this year that there was “material uncertainty” over its ability to continue as it struggled to refinance £2.2billion of its debt.
The GMB Union had warned of potential venue closures and job losses throughout Scotland - although that threat appears to be easing.
The refinancing allows the terms for Stonegate’s debts to be extended to 2029, significantly easing pressure on the company as it recovers from the impact of the pandemic and cost of living crisis.
The bulk of Stonegate’s debt relates to its 2019 acquisition of rival pub company Ei Group, which turned Stonegate into the biggest operator in Britain but stacked billions of pounds onto its balance sheet months before the first Covid lockdown.
While drinkers have returned to pubs since the pandemic, soaring interest rates heaped pressure on companies with high debt levels. Stonegate’s finance costs hit £301million last year, pushing the business to a pre-tax loss of £257million despite an operating profit of £68million.