Bramwell faces uncertain future as Stonegate eyes core estate

It is thought that the TDR Capital-backed Stonegate Pub Company is in advanced talks to acquire c80 of the Roger Moxham-led group’s better performing sites, with a deal likely to be completed over the coming few weeks.

Imminent decision​

It is thought that a decision on the future of the entire group which is led by CEO Moxham and chaired by Adam Fowle – both former senior executives at Mitchells & Butlers, could be made this week.

It is thought that the initial restructuring process in 2012, which saw US hedge fund Varde Partners take a significant stake in the Smith & Jones operator, did not go far enough in cutting the group’s then c£160m debt pile or in offloading lossmaking sites.

Hindered investment​

Investment in the group’s core estate, which is understood to be performing well, has been hindered by the pressure to service the company tail of leasehold properties, which is believed to include up to 100 sites.

It is thought that a number of options were being explored for the business, which included Varde or another of the group’s investors taking forward the growth part of Bramwell and in the process backing the current management team.

It is thought that the group’s high percentage of leaseholds cooled potential interest from the likes of Greene King.

Restructuring​

The former Barracuda Pub Company completed a restructuring last September, which saw the separation of its operating company (opco) from its property company (propco).

Under the terms of the restructure, the opco was renamed Bramwell Pub Company and planned to benefit from a credit facility of up to £10m from new backer Värde.

At the time, the company said it believed that the restructuring and new credit facility created a “solid foundation to execute the sales and investment plans” developed by the new management team, led by Moxham.

The group said that the financial restructuring placed it onto a “firm financial footing” allowing a planned investment in service, training and refurbishment in line with the new business plan.

Expansion​

Since morphing into Bramwell, the business has unveiled a new food-led café/bar concept called Wild Lime Bar & Kitchen, which it is currently assessing over three pilot sites with a view to expanding to up to 100 units. It also launched craft beer bar format, The Long Room on the site of The Gate near Farringdon Station.