views

Bars and clubs fail to shake off recession

THE number of bar and pub companies going bust has continued to soar in the last year, a new survey has shown.

While corporate insolvencies have been falling in other sectors, the picture for bars and clubs is still bleak.

A total of 23 pub, bar and nightclub companies have become insolvent in the first three months of 2010 alone, according to the research by accountants Wilkins Kennedy
That represents a jump of 109 per cent on the 11 that went bust in the first three months of 2009.

In total 87 pub, bar and nightclub companies have gone bust in the year to 31 March compared with 79 in the previous 12 months.

In comparison the total number of corporate insolvencies in the last year fell 36 per cent to 5,911 from 9,233 in the previous year.

Wilkins Kennedy called on the new government to avoid weakening the sector furtherwith more restrictions on the insustry in the emergency Budget, on 22 June.

Director Anthony Cork said: “What the pub and bar industry needs to see in the June 22 budget is an end to duty increases. The Government needs to be understanding of the sector and not tax it out of existence.”