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The number of hospitality businesses entering insolvency eased only very slightly in the third quarter of 2025, yet remained historically high, reflecting challenging trading conditions for the industry.
Some 857 accommodation and food service companies, including hotels, restaurants and pubs, closed in the three months to September 2025, down 2.7% from 881 in Q2 this year, but matching the same three months of 2024, according to government data.
The number of monthly hospitality insolvencies has remained consistently over 275 so far this year.
The Buchler Phillips Hospitality Index of insolvencies, which has tracked monthly figures since January 2014, edged down a shade from 197.3 in June to 191.9 in September. It peaked in August 2023 at 273.4 with a spike in the sector’s business closures.
High profile operators closing high street units have included Pizza Hut, which shut 68 restaurants and put 1,200 jobs at risk after its UK operation entered administration. Simmons Bars was sold in a pre-pack administration deal.
Jo Milner, managing director of the leading turnaround and restructuring firm, said: “Life remains extremely tough for the hospitality sector. Along with retail and construction it’s right up there with the worst hit UK business sectors. Pressure on consumer spending remains, staff costs have risen significantly and pre-Budget uncertainty hasn’t helped.”
