Pub and Bar Company Closures Double as Operators Battle Rising Costs, Taxes and Changing Habits

The number of pubs and bar companies collapsing into insolvency rose 2.6% from 769 to 789 over the year to December 31, according to analysis of insolvency data.

That increase was largely driven by a 33% rise in the number of pub businesses closing in Scotland, where the number of failures rose from 40 to 53 last year. Pub and bar business insolvencies rose in England and Wales from 729 to 736.

The 789 pubs and bars groups in England, Scotland and Wales that fell into insolvency last year was more than double the 367 that went under in 2020. Among the notable failures in 2025 was cricket-themed chain Sixes, which was backed by England captain Ben Stokes, and Oakman Inns, the pubs and hotels chain.

This year has already seen the collapse of Revolution bars owner the Revel collective, as well as the closure of 38 out of the 49 bars operated by collapsed craft beer pioneer Brewdog.

Peter Kubik turnaround & recovery partner in our London office, said that more operators are likely to fall into insolvency as they battle ongoing headwinds, ranging from increased staffing costs, higher energy and food and drinks bills, and increased red tape, such as changes to waste disposal regulations.

Additionally, pubs and bars operators have to contend with fewer people going out due to the squeeze on household finances, reduced alcohol consumption rates and price competition from supermarkets. For operators carrying heavy debt loads, it has compounded the problems they already face with rising interest rates.

“Pubs and bars are firefighting on several fronts and with the exception of Covid-19 and 2024, insolvencies have risen every year over the past decade. I would not be surprised to see more,” Peter Kubik said.

“Pub groups will be worried how war in the Gulf is going to impact their energy prices. The Government will be giving pubs a 15% discount on pubs and bar groups’ business rates bills from April, but it simply is not enough when you look at the costs and burdens they face. It is like giving someone facing a tidal wave in a small boat a bucket.”

Since 2020, the average cost of a pint of lager across the UK has risen from £3.75 to £4.83, with even steeper price rises in major cities like London. Cost-of-living concerns have made people more reluctant to spend on going out after work or at weekends, especially when supermarkets’ alcohol prices are far cheaper.

Pubs and bars’ after work footfall is depressed due to the number of people that still work from home, as is the increasing number of non-drinkers. In England, 24% of the population did not touch alcohol during the course of 2024, up from 19% in 2022, rising to 39% for people aged 16-24.

Kubik said: “The demographic and behaviour changes pubs and bars face are particularly concerning. Young people are drifting away from having a drink after work and drinking at all, which means pubs and bars’ customer base is getting older and will continue to decline unless something changes.”