Pub insolvency rate begins to slow

Insolvency rates for pub companies appear to have slowed in the last three months.

Figures from PricewaterhouseCoopers (PwC) reveal that insolvencies rose by a third for the first quarter of 2009 on 2008 levels — a substantial drop on the increase of 97% recorded in mid-2008 on the previous year.

A total of 80 pub companies filed for insolvency in the three months to March 2009. PwC said this showed the pub industry had seen some respite.

"Many pub groups have seen some benefit from December trading which, despite the downturn, will still have provided some Christmas cheer," said Stephen Broome, director at PwC LLP.

"With the quieter months of January and February now a distant memory many landlords and pub companies are hopeful of survival through to the summer."

He added: "With no major sporting events this summer to boost revenue and continued low levels of consumer confidence, 2009 will probably not be remembered with great affection by the pubs industry.

"But perhaps the predicted heat wave and greater numbers of people planning a UK holiday will at last provide some growth potential for an industry where good news has been hard to find."

Tough restaurant sector​

However, restaurant insolvencies continue to rise at an alarming rate with 186 restaurant companies joining the insolvency register in the three months to March 2009.

The total number of restaurant business failures has increased by 70% since the beginning of 2008.

"Lower numbers of customers are spending less on dining out, and this combined with over supply in some locations means it is no surprise that more restaurants are failing," said Broome.

"Despite the odd high profile casualty, the data tells us that the majority of failing restaurants businesses are smaller often one off restaurants at the lower end of the market."

However, branded restaurants continue to be popular.