Begbies Traynor warns of pubs crisis to come
Dec 20 2010 by Henryk Zientek, Huddersfield Daily Examiner
INSOLVENCY experts are predicting a rise in the failure rate for pubs and hotels in the new year.
Business rescue and recovery firm Begbies Traynor, which has offices covering Kirklees and Calderdale, said severe weather had compounded existing problems facing the sector – leading to a likely increase in “distressed” businesses in January.
Begbies Traynor said heavy snows in December had cost some independents and chains up to two weeks’ takings at a time of year when trade should be strong.
Spokesman Julian Pitts said: “The double whammy of tightening consumer belts and severe weather problems have left thousands of pubs, restaurants and hotels counting the cost of missed Christmas parties, reduced local trade and cancelled business travel that will force many struggling businesses to the wall.
“The hospitality sector has seen falling revenues and rising prices over the past few years – and with business borrowing difficult to secure in the sector, the missing revenues will be the final straw for some hospitality businesses.
“Although some local community pubs have seen an uplift in trade as people unable to work enjoyed impromptu daytime get-togethers, the majority of rural pubs, town centre venues and restaurants have suffered and some venues have seen takings slashed by 90%.”
He added: “It will be January before the real cost is counted.”