Number of firms going bust eases but remains historically high

Business closures in hospitality in the first six months of 2026
Business distress: some 1,602 hospitality companies entered insolvency in the first six months of 2026, according to analysis of official figures (Getty Images)

More than 1,600 accommodation and food service companies including pubs collapsed in the six months to June 2026, new research has found.

This was down 6.1% from 1,706 for the first half of 2025, according to Government data however, the second quarter saw a 10.2% rise compared to the first, with 840 companies in trouble, according to analysis from Buchler Phillips’ Hospitality Index.

Furthermore, this meant the number of monthly hospitality insolvencies has remained consistently more than 260 so far this year.

The index, which tracks monthly figures, rose from 180.6 in March to 199 in June. August 2023 saw a peak at 273.4 with a spike in the sector’s closures.

Little breathing space

Buchler Phillips managing director Jo Milner said: “There may be some easing in the headline insolvency figures but there is precious little breathing space for hospitality businesses.

“Margins remain wafter-thin, consumers are still watching what they spend and higher employment and operating costs continue to bite.

“Hospitality remains near the top of the insolvency league table and for many otherwise viable businesses there simply isn’t much left in reserve when something goes wrong.”

This comes after research from the Hospitality Market Monitor from NIQ powered by CGA earlier this year found licensed hospitality numbers remained broadly stable in the second quarter of 2026 though the flat headline figure masked a rapid turnover of closures and openings.

Previous data

The data found there were 98,564 licensed premises operating at the end of June - largely unchanged from the end of March and 0.2% lower than the same point last year.

This followed analysis by The Morning Advertiser of trade body data, which showed the on-trade lost 16,150 since the start of the millennium.

According to the British Beer & Pub Association (BBPA), there were 60,800 pubs in 2000.

In 2025, the number of pubs fell to 44,650 - a difference of more than a third (36%) over the previous quarter of a century.