'Identity Crisis' Hits North West Pubs

More than a third of North West pubs are considered at higher than normal risk of failure over the next 12 months, according to the insolvency trade body, R3.

Figures produced by R3, using credit ratings from Bureau van Dijk's Fame database, show that 37% of pubs in the region - or 729 businesses - are under threat.

Jeremy Oddie
Mitchell Charlesworth's
Head of Recoveries,
Jeremy Oddie

Jeremy Oddie, a spokesman for R3 in the North West and Head of Recoveries at Mitchell Charlesworth, said the problems cannot be blamed solely on the economy, but rather reflects wider challenges facing pubs including increased competition, changing consumer habits, and the after effects of the smoking ban.

"Consumers now have a wider choice and their tastes are more sophisticated. Pubs are facing competition from on-trend bars and restaurants", he said.

"In addition, the pub trade has never fully recovered from the smoking ban, with many smokers now preferring to drink at home instead.  The falling price of alcohol in supermarkets has also been undermining the popularity of pubs."

"Pubs are struggling with an identify crisis.  They now have to cater for a much more diverse crowd with different expectations of what constitutes a 'night out'.

"Female drinkers have become much more influential, and are often key decision-makers when choosing where to go.  Younger men are also less attracted to traditional pubs".

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Mitchell Charlesworth's Corporate Recovery and Insolvency team is led by Partner, Jeremy Oddie who has been named on Insolvency Today's Power 100 List. The Power 100 represents the top 100 individuals in the UK working in the insolvency profession.

This story originates from Insider, and can be found here.

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