Something went wrong with the connection!

Hospitality industry accounted for 10% of UK administrations in 2023

 Breaking News

Hospitality industry accounted for 10% of UK administrations in 2023

Hospitality industry accounted for 10% of UK administrations in 2023
August 11
12:15 2023
Spread the love

The hospitality industry accounted for 10% of administrations in the first six months of 2023 – the fourth highest sector in the UK – according to analysis by full-service law firm Shakespeare Martineau. A total of 759 businesses, 79 of which came from the hospitality industry, filed for administration between 1 January and 30 June 2023, marking a 22% increase compared to 2022.

Retail, manufacturing, construction, hospitality and real estate were the worst-hit sectors, accounting for 57% of all administrations. Greater London led the way with 25% of the filings, followed by the North West (15%) and South East (11%), data from The Gazette Official Public Record has revealed.

While administrations are still yet to hit pre-Covid levels (940 in the first six months of 2019), an insolvency and restructuring expert has warned that more businesses will fail unless inflation is controlled and interest rates stop being increased.

Administrations 2019-23.png

Andy Taylor (pictured above), partner and head of restructuring at Shakespeare Martineau, said: “Given the prolonged economic uncertainty that is plaguing the country, the increase in the number of businesses filing for administration is no surprise.

“HMRC is definitely taking a harder line than in previous periods and its threat of enforcement is certainly pushing some businesses towards considering their options, with some seeking administration as an alternative to facing a winding up petition.

“We’re seeing a steady flow of corporate failures. Should some other ‘bad news’ rear its head, then that is only likely to increase. Businesses and individuals need to see interest rates and inflation come down. With a period of stability, we will see confidence increase.”

With the sector’s filing almost doubling when compared with the first six months of 2022, the retail industry replaced construction as the worst-hit sector. The hospitality, real estate and manufacturing sectors also remained in the top five.

Andy Taylor added: “The sectors most impacted are feeling the effects of higher interest rates and inflation; the money in people’s pockets is now worth less so they are less likely to purchase none essential items and services, which is impacting the retail and hospitality sectors.

“Consumer spending is shrinking and footfall on the high street and in restaurants is declining as a result. The pressure is also on businesses as they face higher borrowing costs and energy expenses, so they are being squeezed from both sides.

“There is still uncertainty in the geopolitical landscape, which is impacting business confidence. With cash flow becoming tight, businesses are at a greater risk of going under. Supply chain issues and the rising cost of importing goods, especially in the automotive industry, have created a challenging juggling act for businesses to maintain profitability.”

Greater London remains the region where most businesses filed for administration. However, the North West overtook the South East for second place, and the West Midlands replaced the East of England in the top five.

Andy Taylor said: “Our advice remains consistent – seeking professional advice early can open up more options for struggling businesses. It is crucial not to ignore the signs and bury your head in the sand, and, instead, take a proactive approach to address underlying issues. By doing so, businesses can better navigate the tough trading conditions and increase their chances of survival.”

Businesses filing for administration in the first six months of the year

By sector



By region



Agriculture 3 2 North West 93 116
Mining and quarrying 5 4 North East 21 33
Manufacturing 88 91 Yorkshire & The Humber 61 77
Utilities 19 36 East Midlands 28 51
Construction 98 85 West Midlands 29 69
Engineering 18 18 East of England 59 47
Automotive/transportation 32 38 Greater London 137 192
Retail 62 118 South East 104 84
Hospitality 63 79 South West 29 41
Information & communication 25 44 Scotland 28 27
Financial 48 32 British Isles 0 2
Real estate 55 59 Wales 23 16
Professional services 50 20 Northern Ireland 9 4
Administrative 23 26
Public admin and defence 3 10
Education 1 6
Health and social 17 32
Arts and entertainment 5 26
Others 6 33
Total 621 759 Total 621 759


Warning: count(): Parameter must be an array or an object that implements Countable in /home/fdbusiness/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

    Subscribe Here