Distressed pub sales fuelled by economic downturn

The downturn in the economy has prompted a sharp rise in the number of forced pub sales, according to a leading property agent.

Christie + Co said it had seen an overall increase of 126 per cent in the number of distressed asset sales in the six months to the end of September, versus the same period in 2009.

Distressed pub sales rose 189 per cent, with the number of units involved believed to be between 50 and 100.

Hotels were also hit, with an 88 per cent rise in the number of sites sold in the six month period

And the number of restaurants in trouble rose sharply, with distressed sales up 67 per cent as factors such as discounting and rising food prices started to hit profitability.

Steve Rodell, who heads Christie's bank support and business recovery department, said a number of businesses had faltered thanks to the tough economic climate, and many more were expected to fall by the wayside over the next six to 12 months.

"However, as our data shows, distressed assets continue to appeal to experienced operators and those looking to start their first business, with a marked rise in buyers returning to the market during 2010.

"There also continues to be a number of success stories across our sectors, where operators have sought advice or adapted their offers in line with the changing trading environment," he added.