Reviewed: 8th January 2018
According to a report by Ortus Secured Finance, the number of pub and bar business insolvencies has risen to 482 during 2016/17 – an increase of 9% from the previous year.
Some of the causes of this downturn can be attributed to the general economic conditions experienced by other industries, including increased rents and business rates, but what sector-specific issues might pub landlords and bar owners be dealing with?
The freeze on most alcohol duty in the 2017 Autumn Budget was said to be in recognition of the integral part played by pubs as part of the fabric of our country, and of the industry as a whole in helping to boost the economy.
But this is a small glimmer of hope for pub landlords and bar owners operating in an industry where uncertainty and financial struggle is currently the norm. So how can we help when your pub or bar business is facing financial decline?
Our main aim when working with clients is always to achieve business rescue where possible. We offer a free same-day meeting to discuss the situation, and identify potential options.
These could include, but are not limited to:
We have professional contacts with over 50 alternative lenders around the UK, and can provide support in sourcing and applying for vital additional funding. This could help you pay your bills as they fall due – a particularly important issue if HMRC is involved, as they have the power to take action quickly in recovering arrears of tax, National Insurance, and VAT. We can also help you negotiate with HMRC for extra time to pay.
It may be possible to arrange an extended period of time in which to pay any HMRC arrears. This is generally between three and six months, although instalment plans covering a full 12 month period may also be available in some cases.
A CVA is a formal insolvency solution that allows eligible businesses to make a single monthly repayment to creditors, which is then distributed by the appointed insolvency practitioner according to this legally-binding arrangement. Company Voluntary Arrangements allow you to carry on trading once they’ve been set up, and are intended to help you return to profitability over the long-term.
If the business has been assessed, and is not viable for the future, you can protect your creditors’ interests by instigating a voluntary liquidation of the business. A CVL prioritises creditors, and can also be a beneficial route for directors of pub and bar businesses who are worried about personal liability.
Real Business Rescue are specialists in the pub and bar sector, and will provide the professional support you need. This could include help to complete and submit an alternative finance application, or perhaps to negotiate on your behalf with creditors.
Our extensive experience of creditor negotiations instils confidence in your ability to repay, and is especially beneficial when dealing with a large creditor such as HMRC. Let us help you survive the downturn and regain your footing in your industry – call one of our licensed insolvency practitioners to arrange a free same-day meeting at your own business premises, or with 75 UK offices nationwide.