Close Menu
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Restaurant Insolvencies Up as Sector Faces ‘Onslaught of Challenges’

By Jon Munnery
29 March 2022

The number of restaurant businesses entering insolvency increased notably during the final three months of last year, according to a new set of figures.

Data from the accountancy firm UHY Hacker Young shows that insolvency cases in the sector increased by almost a fifth in Q4 2021, compared to the previous three months.

The Covid crisis had a huge impact on the hospitality sector across the UK but indications suggest that even with the worst of the pandemic behind them, restaurant businesses are still facing tough economic headwinds.

Among the issues affecting operators in the sector is that of commercial landlords now being legally allowed to pursue debts owed by their tenants in relation to periods of time during which they were unable to open due to Covid restrictions.

Being forced to repay rent arrears could be enough to push a growing number of restaurant businesses into insolvency and potentially liquidation in the coming months.

Inflationary pressures are already being felt by businesses across the sector and restaurants will soon be obliged to absorb an increase to National Insurance rates, which will further add to their overheads.

Also, with the Bank of England’s base rate of interest having increased recently, restaurant businesses can expect any loans they take on to be more expensive than they would have been in recent years.

Overall, it is clear that restaurant businesses are currently operating in the face of some tough economic headwinds and many will be considering their options around insolvency and liquidation as the year goes on.

“The restaurant sector has emerged from one crisis only to face an onslaught of other challenges,” said Peter Kubik, a partner with UHY Hacker Young in London.

“Covid restrictions may have ended but higher loan repayments, National Insurance increases and potentially lower demand as the cost of living crisis starts to bite could see an even greater number insolvencies within the sector.

“Restaurants could at least rely on government support during the worst of the pandemic. Now that these protections have come to an end, they’re having to face multiple challenges with zero help.”

Jonathan Munnery
Insolvency & Restructuring Expert
Is Liquidation the best option for you?

By completing the test, you will receive:

Your Liabilities & Assets
Types of Liquidation Available
Your Companies Health Risk
Alternatives to Consider
Related Articles
Voluntary Liquidation Cases Up 9% On Last Year
The number of voluntary liquidation cases in England and Wales were up by 9 per cent in March as compared to the same month of last year.
Read more
Fashion Retailer Dress Me Online Entered into Liquidation
A fashion retail brand known as Dress Me Online has been entered into liquidation after struggling to cope with an array of financial pressures in recent months.
Read more
Soaring Cost of Steel Helps Push Engineering Firm into Liquidation
Steep increases to the cost of steel in recent months have helped force a Gloucestershire-based engineering firm into liquidation.
Read more
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout
Logo Tma
Logo Business Recovery
Logo Cse
Logo Iip

Looking for immediate support?

Complete the below to get in touch

100% Free & Confidential Advice

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY