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Scottish hoteliers and retailers at serious risk of going bust

Hundreds of businesses in the retail and hospitality sectors in Scotland are at serious risk of going bust according to detailed analysis by insolvency trade body R3. Research by R3 using the Bureau van Dijk (BvD) ‘Fame’ database found that 274 retail businesses and 30 hotels in Scotland had a high risk of going bust within the next 12 months.

In the next cluster after the high risk group there are 1238 retailers and 137 hoteliers whose businesses are vulnerable to failure within the coming year. This means that over a quarter (26.15%) of all retail businesses and 17.99% of all hotels in Scotland are at risk of failure within the next 12 months.

Iain Fraser, Scottish R3 spokesperson, explained: “It is not likely to surprise anyone that the retail and hospitality sectors are vulnerable. Retail, as has been widely reported, is suffering both from a lack of consumer confidence coupled with systemic changes to the way in which people buy products. The shift to online purchasing is greatly affecting retailers, many of which have not effectively moved online.”

“Whilst there will always remain high street retail outlets their composition, offerings and delivery have changed dramatically over the last ten years and will continue to do so. Those retailers that do not respond to these changes will, unfortunately, cease to exist. There also remains the extremely difficult economy which, even for those businesses that are successfully adopting new technologies, poses a challenge for all businesses. There remains some way to go before the economy recovers and, until that time, retailers offering niche or non-essential products will face troubling times.”

Iain concluded: “Equally the hospitality sector remains vulnerable to the economic gloom. Leisure travel can easily be curtailed and business travel remains subdued therefore hotels face the difficult challenge of maintaining reasonable occupancy levels without simply heavily discounting rooms. Given that operational costs remain high this is a tricky balancing act facing many hotels and, unfortunately, given the high capital costs involved in the hotel sector it is likely that many businesses will continue to go under until the market recovers.”


Media enquiries: Colin Wright, PR Consultant: 0131 556 0394 07949 487845

Notes to editors:

• ‘At risk of failure’ is defined as a company that has a QuiScore below the normal band. The QuiScore is a measure of the likelihood of company failure in the twelve months following the date of calculation.
The QuiScore is given as a number in the range 0 to 100. For ease of interpretation, that range may be considered as comprising five distinct bands:
82-99 The Secure Band:
57-81 The Stable Band:
37-56 The Normal Band:
19-36 The Caution Band:
01-18 The High Risk Band:


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.