A “perfect storm” is hitting the restaurant sector, with quarterly rent bills due at a time when costs are climbing, consumer spending is subdued and new business rates are on the horizon.
The latest Red Flag Alert report, which monitors the financial health of UK companies, shows that 11,091 restaurants are now classed as in “significant” financial distress, an increase of 8 per cent on the 10,228 recorded at the same stage of 2017.
The findings come as a number of well-known restaurants, including chains Byron, Strada, Jamie’s Italian and Prezzo, have all announced closures over recent months. Adding to this, Carluccio’s is reported to have approached multiple private equity groups in an effort to secure a sale, after appointing advisers to look at options for the group.
At Beavis Morgan, we have extensive experience of working with clients in the hospitality sector and our professionals are acknowledged experts in issues affecting pubs, bars and restaurants.
Through our partner businesses, BM Structured Finance and BM Advisory, we are able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.
Contact Matthew Burge or your usual Beavis Morgan Partner for further information about how we can assist you and your hospitality business.