Bar insolvencies up 45%

9th February 2009, 11:11am

The Association of Licensed Multiple Retailers (ALMR) has said that new insolvency figures for the bar industry highlight the dangers of implementing Government plans for a mandatory alcohol code.

New figures released by the Government's Insolvency Service show that the number of bar companies entering insolvency jumped by 45% between the Q3 and Q4 of 2008.

In addition, the statistics show that, compared to the same period in 2007, bar company insolvencies in Q3 of 2008 increased by almost a third (31%).

Commenting, ALMR Chief Executive Nick Bish says: "These figures speak for themselves. They reflect the growing toll of the downturn on Britain's pub and bar industry. These companies are not just individual pubs; each one will operate a number of outlets which employ at least 10 staff.

"The Government's own statistics demonstrate the strain that pubs are already under. Whitehall should take a long, hard look at its proposals to introduce an alcohol code of practice. There can be no blanket conditions without there being further job losses. Every pound spent on compliance costs is a pound not re-invested in a business that employs people.

"If they continue punishing pubs regardless, it is Downing Street who will be responsible for forcing more pubs and bars into liquidation and the consequent job losses."

Related Articles:

• 16 Mar 2009 - ALMR calls for ban on below cost selling

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