Administrators warn sharp rise in pub insolvencies
Administrators warn a sharp rise in the number of pub and bar insolvencies in the coming months
Insolvency experts are warning of a sharp rise in the number of pubs and bars
going to the wall as trading across the licensed sector continues to suffer
under the double burden of reduced consumers spending and mounting energy,
employment and raw material costs.
Craig Livesey on the
PricewaterhouseCoopers
(PwC) team which dealt with the
Cains Beer
Company administration, told The Publican it was an unfortunate
fact his firm was seeing more work as companies foundered. ‘What is surprising
us is the speed with which things for some companies are turning sour,’ he said.
Clive Lewis, head of small and medium enterprises at the Institute of
Chartered Accountants of England & Wales, said concerns some companies which
had gone into administration were being bought back by former management were
understandable.
‘It can seem like rough justice to some, but a lot of genuine businesses get
caught up in bad times and deserve a second chance,’ he said.
Further reading:
Administrators fail to keep Cains beer flowing