Number of hospitality company insolvencies up 59% in a year
Recent data found that an estimated seven in ten pubs believe they will not survive the rising cost of living and increasing energy bills, according to the Morning Advertiser. A further 8% of pubs said they had an increase in utility costs of more than 500% and 65% had an increase of at least 100%.
The number of hospitality company insolvencies has risen by 59% over the past year amid spiralling cost pressures, according to figures from the Insolvency Service.
The data found that 2,156 pubs, bars and restaurants went insolvent in the 12 months until the end of July, compared to 1,354 the year prior.
There were 216 insolvencies of hospitality businesses in July this year, up from 158 in June.
Recent data found that an estimated seven in 10 pubs believe they will not survive the rising cost of living and increasing energy bills, according to the Morning Advertiser. A further 8% of pubs said they had an increase in utility costs of more than 500% and 65% had an increase of at least 100%.
The government is expected to announce further details of its £150b energy support package for households and businesses in an emergency budget on 23 September. It has promised to backdate support for businesses from October if the scheme is not up and running in time.
The Campaign for Real Ale (CAMRA) revealed ‘long term’ pub closures had doubled in the first half of 2022 against the six months of last year.
In the second half of 2021, 254 pubs were recorded as ‘long term closed’, compared with 485 between January to June 2022.
Among these is Brighton Beer Dispensary, East Sussex, which were forced to close its doors due to rising electricity bills and issues caused by Brexit.
BrewDog has recently closed six bars to cope with soaring energy costs, and the Railway Inn, Rodley, Leeds has also shut its kitchen.
