As the restaurant and pub sector faces difficulties, Jamie Playford has provided comment used by to the Eastern Daily Press, after dealing with a number of insolvency cases in East Anglia, as both independent and national chains compete for customers. The hospitality sector has recorded the highest number of business failures in recent times, according to the specialist insolvency and business rescue practice, Leading Corporate Recovery.
Link: www.edp24.co.uk
A review of insolvencies in the Eastern region by the Norwich-based firm shows that restaurants, pubs and cafes have suffered most with 17% of casualties.
Jamie Playford, a director at Leading Corporate Recovery and a licensed insolvency practitioner, commented on the results of the research: “Norwich has always enjoyed many vibrant, independent restaurants and bars, however over time we have seen the number of national chains in the city increase, which has ultimately pushes down prices.”
The problems have been put down to increased competition and reduced consumer spending, combined with an increase in overheads, such as rent and insurance, and regular increases to the National Minimum Wage.
Other sectors that have fared badly include construction and related trades (16%), followed by the offshore industry and the service sector, both adding to the list at 11% each. Mr Playford said: “Many people in Norfolk will be aware of the difficulties in the offshore sector caused by the drop in oil prices. Although there has been some recovery, the sector has still not fully recovered.”
Mr Playford added: “The recent failure of Carillion, and national retailers regularly falling into Administration, demonstrates that the size of a business does not make it immune to difficulties. Businesses should ensure they have accurate and timely financial information available to help spot issues early, in order to make any necessary changes to avoid more serious problems further down the line.”
Notes for editors:
Leading Corporate Recovery is East Anglia’s fastest-growing insolvency and business recovery practice, providing insolvency, restructuring and strategic advice to businesses and individuals nationwide, from offices in East Anglia, the Midlands and London.
