The latest company insolvency statistics, published today (18 March), show accommodation and food services insolvencies also rose 3% when compared to the same month last year (January 2024: 265 insolvencies).
However, in the 12 months to January 2025 insolvencies fell 7%, from 3,747 to 3,474.
Commenting on the figures, Saxon Moseley, partner and head of leisure and hospitality at leading audit, tax and consulting firm RSM UK, says the number of hospitality insolvencies recorded in January is ‘not as bad as feared’.
“Hospitality trade at the start of the year was particularly tough, so the rise in insolvencies in January was expected, but perhaps not as bad as feared,” he says.
“While some operators managed to weather the storm at the end of last year to maximise trade during the festive period, January’s figures suggest the resilience of these businesses could be starting to slip.”
He adds that with more headwinds to come from April in the form of tax rises, combined with new regulatory requirements, pressures on the leisure and hospitality industry are only set to increase.
“It’s crucial that businesses closely monitor their cashflow during this period of uncertainty.”
