Pub insolvencies

Research of credit risk scores and balance sheet information indicates that more than one in 10 (11%) of British pubs are facing imminent closure due to their worsening financial position over the past year.

Analysis by Price Bailey, of the credit risk scores and balance sheet information of all 37,961 pubs and bars in the UK, reveals that 7,445 (20% of the total population) have negative net assets on their balance sheets. A business with negative net balance sheet assets is deemed to be technically insolvent, indicating that these businesses are vulnerable to going bust.

Of the 7,445 pubs which are technically insolvent, 4,310 have a Delphi Risk score in the Maximum Risk category (11% of the total population of 37,961 pubs). That is an increase of 930 from 12 months ago, when 3,380 pubs were classed as both technically insolvent and in the Maximum credit risk category, representing nine percent of the total number of pubs.

Insolvencies of pub businesses, year ending 30 June

Matt Howard, Head of the Insolvency and Recovery Team at Price Bailey, comments:

“The number of pub closures in the first six months of 2024 matched last year’s record and there are few signs of improvement. More than one in 10 British pubs are technically insolvent and at imminent risk of collapse. These businesses will find it almost impossible to access extra funding unless the owners provide personal guarantees, which few are likely to do in the current climate.”