How insolvency practitioners can help struggling hospitality businesses
More than three years after officially withdrawing from the EU, the UK continues to struggle with the challenges posed by Brexit and its compounding effects on the UK labour market and economy.
Reliance on European workers has impacted numerous sectors, but perhaps none are feeling it as strongly as hospitality businesses, with closures having risen rapidly in previous months.
EU staff shortage forcing hospitality closures
Figures obtained by The Independent show that during the 12 months from March 2022—when COVID restrictions ended—to March 2023, nearly 4,600 hospitality venues closed.
These figures includes pubs and clubs as well as hotels and restaurants, covering a huge swathe of the UK’s leisure and hospitality business entities.
While the ongoing cost-of-living crisis presents its own challenges, Brexit and its fallout has hindered many of the individuals previously using free movement within the EU to fulfil these roles within the UK.
Industry figures now show that hospitality vacancies have risen by almost 75 per cent since Brexit, the highest rate among all sectors of UK business.
With many hospitality businesses requiring fast-paced work in high-stress environments, a lack of available workers leaves many establishments untenable.
Repeated closures quickly means that the business takes no money and has little choice in its future.
How can hospitality businesses combat this?
Of course, there is only so much that these businesses can do to plug up the gaps in their recruitment.
However, there are still choices that businesses can take. Insolvency doesn’t need to be the end of the road, and while filling gaps in recruitment is the most straightforward way to returning the business to profitability, business owners need to consider other options when that becomes impossible.
Licensed insolvency practitioners can lend invaluable advice and guidance for businesses that are struggling. Though debt struggles can seem insurmountable and fill you with fear for the future, it may be that there is simply a path through them that you can’t yet see.
This is why insolvency practitioners are so vital to struggling businesses.
It may be that a simple agreement with creditors can be the difference between an amicable solution, and the winding up of your business.
How can insolvency practitioners help?
Licensed insolvency practitioners are empowered with the experience and legal tools required to guide or take limited control of a business where needed.
This can ensure that creditors are repaid at least part of their debt and that the most pressing debts are tackled first.
Meanwhile, your practitioner can prevent further action being taken against your or your business while you focus on sorting assets and restructuring the business as necessary.
Is your business struggling in a demanding economy and struggling labour market? Contact Irwin Insolvency today and let us help tackle your worries.