By Caitlin Allwood
Hospitality Industry Ranks Third in UK Administration Rates with 12%
In 2023, the hospitality industry was one of the hardest hit sectors in the UK with 12% of total administrations, according to a recent study by Shakespeare Martineau. The study found that out of 1,641 businesses that filed for administration last year, 190 of them were in the hospitality sector. This represents a 22% increase compared to 2022 and a whopping 91% increase compared to 2021.
Retail and construction sectors suffered the most, followed by the hospitality, manufacturing, and real estate sectors, which altogether accounted for 59% of all administrations. With the number of administrations nearing pre-Covid levels (1,794), Shakespeare Martineau warns that sustained periods of difficult trading, combined with rising geopolitical tensions, may cause more businesses to fail in 2024.
This month a plethora of high-profile businesses have had to close their doors. They include Tony Rodd’s Copper and Ink Restaurant ; Simon Rimmer’s Greens Didsbury; The Pig and Whistle, Beverley; and Kindle in Cardiff.
Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “The significant uptick in the number of companies filing for administration in 2023 underscores the challenges faced by businesses amid changing consumer habits, financial pressures, and geopolitical uncertainties. Seeking professional advice early can open up more options for struggling businesses.”
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