Hospitality business insolvency and rescue
Hospitality businesses (pubs, restaurants, cafes and hotels) operate on thin margins and high fixed costs, so a quiet quarter or an energy spike can quickly create arrears. Many also carry pandemic-era debt, including Bounce Back Loans. The right route depends on whether the underlying site and trade are viable, and early advice matters because rent quarter days and energy contracts create hard deadlines.
The cost squeeze
Rent and energy bills are large and largely unavoidable, staff costs have risen, and trade is seasonal and weather-dependent. VAT and PAYE are often the first arrears to appear when takings dip. See VAT arrears and HMRC debt.
Leases and the CVA option
A CVA can be especially useful in hospitality, because it can compromise historic debt and, in some cases, onerous leases while the business keeps trading. Where a site is viable but the company is not, administration may enable a sale. Where a site is no longer viable, an orderly liquidation is the cleaner close.
Pub closures
The BBPA reported that 295 pubs had shut for good across England, Scotland and Wales by the end of September 2026, and it estimates around 360 by the end of the year (published 12 October 2026). Our UK pub closures tracker collates the latest published figures, each dated and labelled with its scope.
The insolvency figures
In the 12 months to September 2026 there were 3,208 company insolvencies in accommodation and food service in England and Wales, 14% of cases where the industry was recorded and the third highest of any industry (Insolvency Service, published 20 October 2026). The count partly reflects how many companies in the sector are on the register, so it is not the chance of any one company failing. See the UK company insolvency tracker for the full industry table.
Other sectors
Compare the pressures in retail and care homes, or see company insolvency by region for how the rate varies from region to region.
Common questions
Can a CVA help my restaurant or pub?
Often yes. A CVA can compromise historic debts and let a viable hospitality business keep trading while it repays an affordable amount over time. A practitioner will assess whether the site and trade are viable.
How many pubs are closing in the UK?
The British Beer and Pub Association reported that 295 pubs had shut for good across England, Scotland and Wales by the end of September 2026. It estimates around 360 by the end of the year, about one a day, against 336 net closures in 2025. See our pub closures tracker for the latest dated figures.
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