PricewaterhouseCoopers Analysis Reports Hospitality and Leisure Sectors Hit by Insolvency

According to the most recent PricewaterhouseCoopers analysis of corporate insolvency numbers, the hospitality and leisure sector has suffered more than most other industries. The industry is according to PwC far worse off compared to this time last year, with a 30pc increase in insolvencies in the last quarter of 2011 versus 2010.In total there were a reported 375 insolvencies categorised as being in the hospitality and leisure sector, with 289 in Q4 2010.

"Q4 would normally be seen as a good time for the sector because of the festive season so it is worrying that we saw a marked increase in the number of insolvencies. We would normally expect to see more casualties in the post-Christmas period and we will have to wait to see whether this does occur or whether the early Christmas gloom resulted in some businesses failing earlier that would normally be the case."David Chubb, PwC.

Overall 3,759 companies became insolvent in quarter four 2011, in relation to 4,042 in the previous quarter which is a seven per cent decrease. According to PwC the hospitality and leisure industry was in respect of corporate insolvencies the third worst performer, behind construction and manufacturing. PwC also reported that London continues to have the highest number of insolvencies, with a significant eight per cent increase.