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Hospitality businesses going bankrupt faster than during Covid

A ‘toxic mix’ of soaring energy costs, staff shortages and declining bookings is taking its toll on the UK hospitality industry with a new report showing that insolvencies are rising fast.

The study by advisory firm Mazars shows that the industry is currently seeing businesses go bankrupt even faster than during the Covid pandemic when most were forced to temporarily close.

Closures in the hospitality sector have risen by 60% in 2021-22 compared to the previous year, with 453 businesses having to shut in the last three months alone.

Another report from industry lobby groups including UK Hospitality and the British Beer and Pub Association said last month that more than a third of hospitality businesses could go bust by early 2023.

If you are struggling with staff shortages, the Tourism & Hospitality Talent Hub supports businesses and individuals within the hospitality, leisure and tourism industry across Greater Manchester through skills, training and recruitment.

Staff facing redundancy can get help from The Growth Company, which works with people who are concerned about their future or have found themselves out of work, providing support and services related to employment legal advice, skills training and recruitment, as well as providing support to businesses to help with redundancy.

The GC Business Growth Hub's #HereForBusiness support package also provides practical guidance and expert advice on a range of topics to help businesses manage the increasing cost of doing business.

This includes a number of workshops and drop-in clinics aimed at local businesses.

Join the first in a series of #HereForBusiness online and interactive workshops: Strive & Thrive - Managing Finance & Costs in a turbulent world on Thursday 24th November, 9:30 – 11:30am.

This session will help SME owners become more financially aware and learn how to make relatively small adjustments to protect and secure their businesses in the coming months.

Register now.

To find out more about #HereForBusiness and access help and support get in touch now.

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