Many Midlands pubs facing bleak future – R3
CLOSING time could be called on over one third of Midlands pubs and bars in the next 12 months, according to research from insolvency trade body R3.
Using Bureau van Dijk’s Fame database, it has found that 35% of watering holes in the region are ‘at risk of failure’.
This statistic is significantly higher than the national cross-sector average of 23% of businesses ‘at risk’.
R3 Midlands chairman Matthew Hammond, a partner at PwC in the Midlands, said: “The recession has continued for longer than could have been predicted and it is getting harder for people to find the money to spend on discretionary items.
“For many, going to the pub after work is being replaced by buying cheaper alcohol in the supermarkets, and the strain on pubs and bars is definitely showing.
“Many bars and pubs in the Midlands and elsewhere around the UK are offering incentives and discounts to try and get people through the door. Unfortunately for some, this will not be enough.
“Customers are becoming increasingly discerning, not only about what they drink, but where they drink it. Those who cannot compete with the trendiest, most convenient or best value venues may well face closure in the not too distant future.”
The financial strain on the sector is particularly evident in London and the South East, with just under 40% of pubs and bars ‘at risk’, showing that not even the capital is immune to the effects of a tightening of the purse strings.
