Hospitality’s Financial Tango: Why January’s Insolvency Numbers Might Be a Wake‑up Call
In the span of a year, the hospitality sector saw its overall insolvency count drop by 7% — from 3,747 companies in 2023 to 3,474 in 2024. A decent win, you might think. But when you look at the month‑on‑month swing, one thing becomes clear: the industry is still on a slippery slope.
January’s Numbers Shift the Spotlight
- Month‑on‑month jump: 21% increase — 225 in December 2024 to 273 in January 2025.
- YoY comparison: 3% rise — 265 in January 2024 to 273 in January 2025.
This spike is no surprise, given the toughest start of the year that many restaurants and hotels faced. “It wasn’t all doom and gloom,” says Saxon Moseley, head of leisure and hospitality at RSM UK. “We expected the numbers to look a little lopsided, but the industry has been holding its ground better than most predicted.”
Moseley’s Take on the Current Landscape
“While a handful of operators weathered the storm and profited from the holiday rush at the year’s end, January is peeling back that façade. Their resilience is starting to crumble.”
With steady tax hikes coming in April and fresh regulatory demands looming, the pressure tower is likely to keep climbing.
What Operators Can Do (and Should)
Keep a close eye on the cash flow. In these uncertain times, the difference between staying afloat and sinking can boil down to a few smart financial moves.
Fortunately, many businesses are already scouting for government support in the upcoming Spring Statement. “There’s a chance this support will be a bridge to the consumer‑led rebound expected later this year,” notes Moseley.
Those who can hold their ground through this rough patch will be in a prime position to snap back and tap into a more favorable market environment when the tides turn.
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