The Insolvency Service has warned that the hotel and restaurant sectors are “still struggling” despite an overall fall in insolvency figures.
31 operators entered administration in the last full quarter (Q4 2012), marking a 29% increase versus the 24 appointments recorded in the previous three months.
On a year-on-year basis, appointments dropped by half. However, the Insolvency Service said the figures continued to reveal “signs of stress” among hotel and restaurant businesses.
“The hotel and restaurant sector is being hit particularly hard by depressed consumer spending as people tighten their belts and chose to stay home rather than splurging on a meal or weekend away,” said Jane Moriarty, restructuring partner at audit and tax specialist KPMG.
“Sadly this trend is likely to continue for the next quarter, as people concentrate on paying off their debt after spending at Christmas.”
Overall in the UK there were 1,007 corporate insolvencies in the fourth quarter. This comprised 276 receiverships, 580 administrations and 151 company voluntary arrangements.
In total these represented a decrease of 14% on the same period a year ago.