Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Big rise in ‘distressed' bar and restaurant businesses

13 April 2011 by
Big rise in ‘distressed' bar and restaurant businesses

The number of distressed businesses in the bar and restaurant sector has shot up 92% between the fourth quarter and 2010, and the first quarter of 2011.

A survey by insolvency practitioners Begbies Traynor showed that a total of 186,554 business were experiencing "significant" or "critical" financial problems compared with 161,601 in the first quarter of 2010.

The company said sectors dependent on discretionary spending suffered particularly badly. Year on year, the number of businesses in the bar and restaurant sector rose 68%.

Ric Traynor, executive chairman of Begbies Traynor Group, said: "The figures for Q1 2011 show the number of UK companies facing ‘critical' problems has risen year on year with significant increases across the leisure sector in particular.

"Compared with our figures for food retail which show little change, it seems likely that a fall in consumer confidence and spending power driven by anticipated job losses lies at the core of the leisure sector's troubles.

Begbies Traynor warns of ‘black Christmas' for hotels and pubs >>

Cougar Leisure to sell off pubs after entering administration >>

Management team saves Skipton hotel from administration >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs

Looking for a new job? Find your next job here with Caterersearch.com jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking