UK Hospitality Sector Struggles with Record Insolvencies

The hospitality sector in the UK has been hit hardest by insolvencies over the past year, according to recent figures from England and Wales. This sector alone accounts for 16% of all company insolvencies, reflecting its significant struggles amid ongoing economic pressures.

Oliver Collinge, Director at PKF Littlejohn Advisory, highlights that persistent high costs and reduced consumer spending are major contributors to the crisis. Despite a reduction in cost inflation, energy prices remain elevated compared to pre-2022 levels. Additionally, while demand has improved due to rising real wages, adverse weather conditions have dampened the sector’s recovery.

Collinge stresses the importance of proactive measures: “Businesses must seek advice early if they face cashflow issues. Acting sooner provides more options to ensure long-term survival.”