Pubs and restaurants accounted for around 10 per cent of all UK-wide administrations last year: that’s according to figures from law firm Shakespeare Martineau. 

Just over 1,700 businesses filed for administration in 2024, 172 of which came from the hospitality sector: making it the fourth hardest-hit in the country behind construction, retail and manufacturing. 

The number of hospitality bankruptcies grew by 28 per cent and 5 per cent on 2022 and 2023 respectively. Filings were particularly pronounced in the Greater London area (23 per cent of the nationwide total), with other hard-hit areas being the North West of England (14 per cent) and the wider South East England region (11 per cent).

Shakespeare Martineau partner and head of restructuring Andy Taylor has said that the figures are indicative of 2025 representing a “perfect storm” for British business, with owners having to confront subdued trading, volatile global geopolitics and a punitive tax environment. 

“As we saw in 2024, sectors like retail, hospitality and manufacturing were hit hardest, and there is a real risk that without targeted support, more businesses will be forced to make difficult decisions, including cost-cutting measures, layoffs or even closure,” he commented. “These pressures are only compounded by the uncertainty in the global economy, which has already led to weakened consumer confidence and subdued spending.”

Taylor went on to forecast an “unpredictable” business landscape in 2025, and urged business chiefs to “seek professional advice as soon as financial challenges become apparent.”