Hundreds of Stonegate pubs could be at risk as private equity parent company TDR Capital seeks to refinance debt totalling £2.5bn.

TDR Capital boss Gary Lindsay told the Business and Trade Select Committee he was “confident” £2.5bn of debt in the Stonegate Pub Company could be refinanced this year. 

However, with current high interest rates, the GMB Union is concerned refinancing could lead to crippling payments to service the debt which it believes could lead to the loss of community pubs.

Stonegate is one of the largest pub companies in the UK, with more than 4,500 pubs and 19,000 workers, including brands like Slug and Lettuce, Yates and Walkabout.

GMB’s regional secretary Justin Bowden said that, like supermarket giant Asda that TDR also owns, the finances of the pub chain are “equally lacking in transparency, with the ultimate holding company based in the Cayman Islands”.

He added: “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 local pubs which are vital community assets. 

“GMB’s experience with private equity owners has been, and continues to be, wholly negative. 

Stonegate said it believes it is well placed to refinance its debt.

A Stonegate spokesman 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 refinance at the appropriate time.”