A total of 233 companies in the accommodation and food services sector entered insolvency in August, down 24% from 306 in July and 12% from 266 in August 2025, according to the latest figures from the Insolvency Service.
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The figures suggest the sector has continued to benefit from a strong summer, although advisers have warned the boost could prove difficult to sustain.
Commenting on the figures, RSM UK partner and head of leisure & hospitality Saxon Moseley said the summer heatwave and World Cup had “lifted consumers’ moods and boosted the hospitality industry”, helping drive the fall in insolvencies.
Positive signs
“While there are positive signs of growth in the sector, recovery remains fragile, so caution is needed to avoid derailing the progress made over the summer,” he continued.
Moseley warned geopolitical uncertainty, the increasing risk of interest rate rises, shifting Government policy and upcoming legislative changes were also putting pressure on the sector’s recovery.
“Operators will be hoping next month’s Budget provides clarify and support, and doesn’t knock consumer confidence in the run up to Christmas,“ Moseley added.
Echoing Moseley, RSM UK restructuring partner Gordon Thomson said while summer trading had helped keep many hospitality businesses afloat, more difficult conditions were on the horizon this autumn.
Future risk
“Historical debt may undermine an otherwise viable position, so restructuring assistance should be sought to help avoid the risk of future collapse if autumn trading disappoints,” he added.
Moreover, despite the latest fall, the hospitality sector continues to account for a significant number of company insolvencies, according to Government data.
There were 3,201 insolvencies among accommodation and food service companies in the 12 months to August, making it the third-largest industry by number of insolvencies over the period, behind construction and wholesale and retail trade and motor vehicle repair.
The latest figures follow a 15% monthly fall in hospitality insolvencies between May and June, when the number dropped from 279 to 237. There were 307 insolvencies in the sector in June 2025.
