Pub failure rate on the increase
The pub sector’s problems have been highlighted in new research which shows the failure rate in the sector is on the increase. According to insolvency practitioners at PricewaterhouseCooper’s (PwC), business collapses in the pub trade rose from 64 in the third quarter to 74 in the Christmas quarter, up 16 per cent. Stephen Broome, PwC’s hospitality & leisure director, said the pace of commercial failures was growing: “With beer sales falling to a record low and almost 40 pubs closing a week, up from the previous average of 36, we are seeing this trend continue to gather speed. “The industry has been ravaged by a combination of negative factors over recent years, and the recession is likely to put further pressure on an already difficult trading environment. We expect our recent prediction of 4,000 pub closures by 2010 to sadly remain on course.”