Insolvency trade body R3 has branded a third of the nation’s pubs and bars as ‘at risk of failure’ in the next 12 months.
Pubs and bars are on a list of high risk categories that are deemed to be particularly vulnerable, as they rank much higher than the national cross-sector average of 23% of businesses ‘at risk’.
“There is a considerably higher proportion of pubs and bars at risk, when compared to the cross-sector average,” said Lee Manning, president of R3. “The recession has gone on far longer than could have been predicted and it is getting harder for people to find the money to spend on discretionary items.”
In London, the proportion of pubs and bars ‘at risk’ is even higher, at 37%, indicating that not even the capital is immune to the effects of tightening purse strings.
The only other region worse affected than London is the South East, where 39% of pubs and bars are ‘at risk’.
“London is full of bars and pubs, many of which are offering incentives and discounts to try and get people through the door, but for some even this will not be enough,” continued Manning. “Those who cannot compete with the most trendy, convenient or best value in the city may well face closure in the not too distant future.”