Hospital Insolvencies Decline, Still Surpassing Historical Averages

Hospitality Insolvencies: Down 11% Yet Still on the Edge

The latest numbers show a decent dip: the accommodation and food services sector reported 3,405 insolvencies for the 12 months ending February 2025, down from 3,829 a year earlier. In February alone, firms in the sector filed for bankruptcy 20 % less than last year (271 versus 339).

Why the Numbers Still Keep Us on High Alert

Historically, insolvency rates in hospitality have never been this high before the pandemic.
Many “less viable” businesses are finally bowing out or restructuring, leaving the stronger players behind.
Economic and geopolitical uncertainties are rattling consumer confidence.
April’s rise in employment costs could keep the pressure high for a while.
Consumers are favoring retail that can be worn for cash‑backs over dining out.
But the warmer months and rising real wages offer a glimmer of hope for a robust summer.

Industry Voice: Saxon Moseley on the New Normal

“It’s encouraging to see hospitality insolvencies down on last year, but they remain historically high when compared to pre‑pandemic levels,” says Saxon Moseley, partner and head of leisure and hospitality at RSM UK.
“Business resilience has improved as the weak guns have been fired, so we’ll only see the stronger operators survive. Yet as many brands close their doors, the monthly loss numbers should wane over time.”
“Economic turbulence and rising costs are hitting consumer confidence sharply. Despite this, with better weather and real wages climbing, we’re hopeful the sector will bounce through the summer.”