Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.
The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.
Every business is different, however there are particular issues that pubs and hotels face which are unique to the sector.
Pubs and Inns are a British tradition and often the hub of the community bringing neighbours, families and friends together. With new laws affecting pubs over the years, many have struggled to stay afloat, often losing out to corner shops and supermarkets for cheaper drinks.
In 2002, there were 60,100 pubs across the UK. In 2016, that number had shrunk to 47,955.
Problems that often arise:
- Rising rent
- Increasing business rates
- Property price rises
- High utility costs
- If pub or bar, there can be an expensive lease with brewery (no discounts for ‘wet’ stock)
- Increasing duty on alcohol (although recent Budget plans have frozen duty for now)
- Drop in customer spending
- Carrying too much overhead when sales decline
- High turnover of staff due to unsociable hours and short, busy periods
- The ongoing effect of the smoking ban
- Increasing competition from supermarkets, off licenses (‘staying in’ vs. ‘going-out lifestyle)
- Change in drinking trends (pre-loading – people buy alcohol in shops before going to pubs, therefore spending less)
- Inadequate smoking areas putting customers off
- Competition with restaurants and food trade
As turnaround practitioners, our specialists can help tackle these issues with you to get your pub/ hospitality business back on track. We can go through all the available options, like expert assessment of the issues your company faces, improved financial reporting, margin analysis, Time to Pay deals, CVAs and pre-pack administrations.
We have very extensive pub /hospitality sector experience, not just from going to the pub too often either! We have been involved in turning around, liquidating, pre-packing and refinancing your sector.
Our MD Keith Steven has also personal experience having personally bought a failing wine bar/restaurant in 2012, this is now trading very well and sales are nearly 100% up in 2017.
Why not download our free 100 page guide on how to rescue your pub or hospitality business! Download here
The guide covers
- Is my pub or hotel company insolvent?
- How can a pub get a time to pay deal with HMRC for PAYE and VAT?
- What is a Company Voluntary Arrangement and why is it a great rescue tool
- How to cut costs in your business
- How to deal with a winding up petition from HMRC.
Why not call Keith Steven on 07974 086779 now? Call us on 0800 9700539 or fill in our enquiry form for free expert advice on a specific situation.