Failure rate still high, says report
More than two-thirdsof restaurant and catering businesses are still in dan-ger of failing, accordingto the Plimsoll Portfolio, a biannual report publishedby independent business analysts.
Plimsoll analysed thereported accounts of 1,027 companies in this sector,in most cases to January 1993.
The report sorts companies into one of five categories: strong, good, mediocre, caution and danger.
It found that 67% of companies were in the caution or danger categories. The report said that unless these companies were reorganised or refinanced they would have difficulty surviving.
Of the 507 companies in the food sector which have been liquidated or placed into administration in the past two years, 89% had been rated in the caution or danger categories by Plimsoll.
