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Hospitality insolvencies drop 16% MoM in August 2024
It also went down by 29% YoY.
Accommodation and food service insolvencies fell 16% month-on-month (MoM) to 270 in August 2024 from 323 and were down 29% year-on-year (YoY) with 380, according to the Company Insolvency Statistics.
“Hospitality businesses have experienced slow but steady revenue growth over the summer, whilst staff vacancies, food costs, and service inflation have all reduced in recent months, pointing towards an easing of margin pressures which have put operators under significant strain,” said Saxon Moseley, partner and head of leisure and hospitality at audit, tax, and consulting firm RSM UK.
However, insolvencies in the sector increased by 9% to 3,712 in August 2024, from 3,419 in August 2023.
The number of registered company insolvencies in England and Wales was 1,973 in September 2024, which was 2% higher than in August 2024 with 1,943 and 7% lower in September 2023 with 2,130.
Company insolvencies in September 2024 consisted of 226 compulsory liquidations, 1,575 creditors’ voluntary liquidations (CVLs), 155 administrations, and 17 company voluntary arrangements (CVAs).
“There are growing concerns about how the budget will impact consumer confidence and the cost of employing staff, which could have a detrimental impact on the sector,” said Moseley.
“At a time where the industry is trying to get back on its feet following a difficult couple of years of trading, it’s imperative that the government treads carefully to avoid damaging its fragile recovery,” he added.
