Closing time for one third of the nation's pubs?
Over one third (34%) of the nation’s pubs and bars are defined as ‘at risk of failure’ in the next 12 months, according to research by R3, the insolvency trade body. This figure is compared to a national cross-sector average of 23% of businesses ‘at risk’.
This news comes at it is revealed that Punch Taverns, the UK’s largest pub operator is experiencing financial distress.
Lee Manning, R3 President, comments: “There is a considerably higher proportion of pubs and bars at risk, when compared to the cross-sector average. The recession has gone on far longer than could have been predicted and it is getting harder for people to find the money to spend on discretionary items. For many, going to the pub after work is being replaced by buying cheaper alcohol in the supermarkets, and the strain on pubs and bars is really showing.”
In London, the proportion of pubs and bars ‘at risk’ is even higher, at 37%, showing that not even the Capital is immune to the effects of tightening purse strings. The only other region worse affected than London is the South East, where 39% of pubs and bars are ‘at risk’.
Lee Manning continues: “London is full of bars and pubs, many of which are offering incentives and discounts to try and get people through the door, but for some even this will not be enough. Customers are getting more and more discerning, not only about what they drink, but where. Those who cannot compete with the most trendy, convenient or best value in the city may well face closure in the not too distant future.”
For further information please contact:
Antoinette Huka, Communications Officer
t: 020 7566 4217 m: 07825 679 462 e: firstname.lastname@example.org
Will Black, R3 Communications Manager
t: 020 7566 4215 m: 07917 422 485 e: email@example.com
Compiled by R3, the Insolvency Trade Body using Bureau Van Dijk's 'Fame' database
‘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:
Pubs - UK SIC (2007) 56.30/2, public houses and bars
Notes to editors:
- R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners.
- R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by one of nine recognised professional bodies.
- R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals
R3 Press Office