Pub and bar failures up
Accountants Wilkins Kennedy said bar and pub failures had soared 31 per cent in the last year, with a rise in the most recent quarter to 130 (Q3 2009: 113).
Anthony Cork, director at Wilkins Kennedy, said: “Despite growing economic recovery, bar companies continue to collapse at an increasing rate.”
“As they were about to embark on the busy Christmas trading period, the most profitable time for this business, it is surprising that lenders are calling time. This lack of confidence from lenders is worrying news for the industry.”
“When well-established brands like Balls Brothers go under in the lead up to Christmas, alarm bells start ringing,” Cork added.
Vulnerable industry
The firm said increasing taxation, undercutting by the supermarkets and the recent snow that paralysed the UK had left the on-trade vulnerable. It added that additional legislation via the Police Reform and Social Responsibility Bill would only make the situation worse.
Cork said: “The government seem to have forgotten pub operators in their desire to tackle binge drinking problems. Banning the sale of alcohol below cost price would curb a great deal of binge-drinking, while sparing the pub and bar industry from further woe.”
Casualties in the past year include Buddha Bar, The Maypole Group, Pubfolio, Faucet Inns, and Regent Inns.
This article first appeared in BigHospitality sister site M&C Report.
