Number of "distressed" restaurant, pub and hotel sales keep rising

3rd November 2010, 10:32am

The pubs for sale sector has experienced a 189% increase in business sales during the six months to 30th September compared to the previous year, reported property agents Christie + Co.

The hotel market seen an 88% rise in the number of distressed hotel businesses sold by Christie + Co during the period, compared to the previous year. Meanwhile the number of distressed restaurant sales also increased, up 67%.

Steve Rodell, head of bank support & business recovery at Christie + Co, said: "Whilst a voluntary exit is usually preferable our evidence shows that businesses can still attract significant numbers of buyers even when tainted by financial distress, which is often caused by over leveraging.

"Many businesses have already faltered as a result of the tough economic climate, and many more are expected to fall by the wayside over the next six to 12 months. However, as our data shows, distressed assets continue to appeal to experienced operators and those looking to start their first business, with a marked rise in buyers returning to the market during 2010.

"There also continues to be a number of success stories across our sectors, where operators have sought advice or adapted their offers in line with the changing trading environment."

Related Articles:

• 01 Nov 2010 - Townhouse pub in Whitley sold to Wear Inns
• 06 Sep 2010 - Christie + Co markets former Moorgate Taverns estate
• 02 Aug 2010 - Christie + Co markets Portsmouth Walkabout

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