Today’s company insolvency statistics show accommodation and food service insolvencies decreased by 17% in March 2024 (to 280, from 338 in February) and were also down 17% from March 2023 (339).
Saxon Moseley, head of leisure and hospitality at RSM UK, comments:
“The hospitality industry has been in the doldrums since 2022, primarily driven by soaring overheads and reduced demand. Last month’s dip in company failures shows the tide may be turning as consumer confidence returns. This brings hope that the second half of the year will show a continued improvement, with interest rates and inflation both expected to fall, which should ease cost pressures on businesses and put more money in consumers’ pockets.”
Gordon Thomson, restructuring partner at RSM UK, added:
“Despite these positive indicators and the likely boon of the European football championships, the trading environment remains turbulent and continued cost pressures continue to plague the industry. With many businesses operating with less than three months of working capital, it is essential that management teams focus on delivering lean operations, while optimising the experience to attract discerning customers.”
