Hospitality insolvencies up by 7% in January

Insolvencies in the sector fell by 7% to 3,474 in the 12 months to January.

Accommodation and food services insolvencies increased by 21% month-on-month to 273 in January and were up 3% when compared to the same month last year (265).

Insolvencies in the sector fell by 7% to 3,474 in the 12 months to January.

“Hospitality trade at the start of the year was particularly tough, so the rise in insolvencies in January was expected, but perhaps not as bad as feared,” said Saxon Moseley, partner and head of leisure and hospitality at RSM UK.

“With more headwinds to come from April in the form of tax rises, combined with new regulatory requirements, pressures on the leisure and hospitality industry are only set to increase,” he added. “It’s crucial that businesses closely monitor their cashflow during this period of uncertainty.”