Insolvencies rose 10.2% in Q2 of 2026 compared to Q1, with 840 companies in trouble over the three-month period, according to the latest Hospitality Index from turnaround and restructuring firm Buchler Phillips.
The number of monthly hospitality insolvencies has remained consistently over 260 so far this year, the index also shows.
The index does, however, show that the number of hospitality businesses entering insolvency eased slightly over the first half of the year. More than 1,600 accommodation and food service companies, including hotels, restaurants and pubs, closed in the six months to June 2026, down 6.1% from 1,706 for the first half of 2025.
“There may be some easing in the headline insolvency figures, but there is precious little breathing space for hospitality businesses,” says Jo Milner, managing director at Buchler Phillips.
“Margins remain wafer-thin, consumers are still watching what they spend, and higher employment and operating costs continue to bite.
“Hospitality remains near the top of the insolvency league table, and for many otherwise viable businesses there simply isn’t much left in reserve when something goes wrong.”