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Scotland smoking ban leads to 25 hospitality closures in first quarter

08 May 2007 by

Scotland's smoking ban led to 25 pubs, restaurants and hotels entering insolvency during the first quarter of the year, according to recovery specialists Johnston Carmichael.

Matt Henderson, business recovery and insolvency partner at Johnston Carmichael, told the Scotsman newspaper today: "The bars that are failing are smaller, typically tenanted bars with fixed tenancy agreements for occupancy costs.

"The effects of customers staying away because they cannot smoke squeeze the margins of the businesses," he added.

While many reports have predicted an initial shortfall in revenues once the ban is implemented on 1 July this is the first time that shortfall has been translated into actual business failures.

Overall 192 businesses failed in Scotland during the first three months of the year.

Scotsman>>](http://business.scotsman.com/agriculture.cfm?id=696752007)

Caterersearch smoking round up>>

Expect a fall in revenues post-ban businesses warned>>

By Christopher Walton

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