Pub insolvencies stay static as overall figures fall
Insolvencies in the pub sector have remained static while insolvencies in general have fallen 3.6%, according to new analysis by Pricewaterhouse Coopers (PwC).
Insolvencies as a whole fell by 3.6%.
PwC said that the reason for the consistency in the pub sector could be as a result of the sector stabilising and that this was the "normal rate of failure to be expected in a quarter".
David Chubb, PwC business recovery partner and hospitality and leisure sector specialist said: "The pubs and clubs segment is in a phase of transition as it strives to recover from the effect of a variety of negative factors during the recession. Closures have been an ongoing feature of the past three years, taking out some over-capacity but the notable point is that there are new investors coming in and the existing operators are increasing their capex spend. There is also good innovation in the sector as operators try different offerings.
"Looking ahead, the better performers are likely to be those who adapt best to changes in customer demand or the local market. You cannot change a location of a pub but you can change the offering of a pub - the key is ensuring that the pub meets the needs of its local market. Those who have been slower to adapt and have underinvested will continue to struggle."
Hospitality insolvencies continue downward trend >>
Leisure and hotel insolvencies increase by 8.6% year-on-year >>
Restaurant insolvencies jumped in 2011 >>
By Neil Gerrard
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