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Insolvencies in the accommodation and food services sector were down 24% to 253 in October 2024, down from 332 in October 2023.
In addition, insolvencies in the sector saw another month-on-month decrease from 261 in September 2024 to 253 October 2024.
Saxon Moseley, partner and head of leisure and hospitality at RSM UK, said: “An early Christmas present for operators as insolvencies hit the lowest level in two years and continued a downward trend since the summer. With the festive trading period well underway, operators will be hoping to build up some reserves to help mitigate the impact of looming cost increases.”
However, Moseley pointed out that the sector is bracing for a number of economic headwinds.
Namely this includes the budget changes set to come in in April and the Employment Rights Bill.
Moseley added: “This backdrop will create consolidation opportunities for operators looking to strengthen market position through strategic acquisitions and bring efficiencies to respond to the budget measures. In addition, as further pressure is applied, distress deals will drive a further wave of consolidation in 2025.”
