Fri, 21 Jul 2023 | BUSINESS NEWS
Administrations in the UK’s food and drink sector were up 110 per cent year-on-year during the first half of 2023. The soaring levels of insolvency have been attributed to a range of factors including inflation, Brexit, COVID-19 and rising input costs.
New findings from Kroll have shown that 56 UK food and drink businesses went into administration during the first half of 2023, more than the entire total for 2022 (53) and an increase of 110 per cent from the figures seen during H1 2022.
Rising administrations in the sector lead to food and drink businesses accounting for 9 per cent of total UK administrations during the first half of the year, as businesses in the sector grappled with a broad array of persistent headwinds.
According to Kroll managing director Ben Wiles, the trend is not entirely in line with previous insolvency trends in the sector, with Wiles calling the soaring rates of administrations an “interesting development”.
He added: “Many of these companies are highly leveraged due to the hangover of COVID and are also affected by higher inflation and energy costs. When you factor in higher borrowing costs and a lack of working capital, it’s proving tricky for businesses in this sector.”
With interest rates continuing to rise, stubbornly high input costs and ongoing labour issues, there have been predictions that the industry’s prospects will not improve significantly during the remainder of 2023 and that more high-profile businesses could begin to be at risk of collapse.
Read more about concerns that rising insolvency levels will begin to spread to larger businesses.
A renowned venue, fronting busy sought after thoroughfare, close to attractions, main shopping High Street with its national retailers, and commercial district with numerous office blocks. Totally refurbished in recent years at a cost in excess of £2...
Exciting opportunity to own a well-established restaurant & bar in a prime harbour location with great potential for further growth.
LEASEHOLD
Established historic inn and restaurant with strong turnover and profit margin available for acquisition, prime opportunity in the hospitality sector.
FREEHOLD
18
|
Feb
|
UK administrations update: February 11 – 18 | ADMINISTRATION
Since our last update, the following businesses have been co...
17
|
Feb
|
PE-backed Solita buys digital group PUBLIC | BUSINESS SALE
Digital transformation firm PUBLIC Group International Limit...
17
|
Feb
|
NRG Marine bought by Alfa Laval to boost decarbonisation aims | BUSINESS SALE
Stockholm-listed engineering firm Alfa Laval has bought mari...
18
|
Feb
|
UK administrations update: February 11 – 18 | ADMINISTRATION
Since our last update, the following businesses have been co...
17
|
Feb
|
NRG Marine bought by Alfa Laval to boost decarbonisation aims | BUSINESS SALE
Stockholm-listed engineering firm Alfa Laval has bought mari...
17
|
Feb
|
PE-backed Solita buys digital group PUBLIC | BUSINESS SALE
Digital transformation firm PUBLIC Group International Limit...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.