Bar and restaurant insolvencies are at their lowest level since Q3 2011, and were significantly lower than in the first quarter of 2012 and also down on Q2 last year, according to new figures from PriceWaterhouseCoopers (PwC).
There were 79 insolvencies among pub and bar operators in Q2, against 94 in the same quarter last year and 100 in Q1 2012. For restaurants, the figure of 159 in the most recent quarter compares to 219 in Q1 and 160 in Q2 2011.
For both pubs and restaurants, the number of insolvencies are at their lowest since Q3 2011 (71 and 156 respectively).
Across the hospitality and leisure sector as a whole, there were 332 insolvencies in Q2 2012, down from 428 in the first quarter and slightly below 337 in the same quarter of 2011.
The latest PwC data points to a decline in the retail sector, with a 10.3% increase in retail insolvencies in Q2 against the same quarter last year. There were 426 insolvencies in the retail sector in the second quarter of 2012 compared to 386 a year ago.
The second quarter saw major retailers such as Clintons, Game and Julian Graves go into administration.
Overall, there were 3,927 corporate insolvencies across all sectors in the second quarter, down 11% on the first quarter of 2012
(4,406) and 3% down on the same quarter in 2011 (4,055).
Mike Jervis, PwC business recovery partner and retail specialist, said: “There has been a clear reduction in the incidence of insolvencies over the current recession compared to previous ones.
“Retail is the sector which keeps bucking this trend. In fact, quarter on quarter retail insolvencies have increased for every one of the last 4 quarters. Other sectors which were showing this trend, such as construction and hospitality and leisure, have had fewer insolvencies during the second quarter of 2012 than the same period last year.”
PwC’s analysis shows that London continues to have the highest number of insolvencies with 887, but this represents a 9% fall compared to the same quarter in 2011 (980).
The north east/Cumbria had the biggest increase in insolvencies against Q2 2011, with 277 against 163 in the same quarter of 2011, a 70% increase. Compared to the first quarter of 2012, the region has seen a 68% increase in insolvencies, and is the only region to see a rise in insolvencies over the previous quarter.
The biggest reduction in insolvencies year on year has been recorded in the west where the proportion dropped 32% to 117. The west is also the most improved region since the previous quarter, with a 29% decrease in insolvencies since the first quarter of 2012.
