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Hospitality insolvencies lowest in two years

Hospitality insolvencies fell 26% month-on-month between November and December 2025, dropping from 276 to 204.

This also represents a 9% decline in hospitality insolvencies year-on-year from 224 in December 2024.

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Total insolvencies for the sector in 2025 stood at 3,353, a 3.32% decrease from the year before (which saw 3,465 accommodation and food services insolvencies) and a 10.3% decline from 2023 (when insolvencies in the category hit a 3,738 peak).

Despite this decline in insolvencies, accountancy firm Price Bailey has said that 1 in 8 pubs in the UK are at risk of insolvency – up from 1 in 10 at the end of 2024 (as Harpers reported).

Year-on-year, insolvencies for ‘beverage serving activities’ (which includes pubs, bars and clubs) rose from 729 to 736.

Commenting on the data, Saxon Moseley, partner and head of leisure and hospitality at RSM UK (an audit, tax and consulting firm), said: “Hospitality insolvencies dropped to their lowest in two years as operators held on to capitalise on festive demand ahead of the typically tougher months of trading.

“With the bleak weather dampening trading at the start of 2026, some hospitality businesses are turning to heavier discounting than usual to get customers through the door.

“But further cost pressures, including the Employment Rights Act, changes to business rates and an increase to National Minimum Wage, will likely be the final straw for some. As a result, we expect this dip in insolvencies to be short-lived.”

The full set of data is avaliable here. 

Picture Credit: Life-Of-Pix on Pixabay

• RSM
• insolvency
• Pub Closures
• The Insolvency Service
• Saxon Moseley
• hospitality closures