Restaurant closure rates slowing down

Posted 23/08/2009

The number of insolvencies in the restaurant sector went down during the second quarter of 2009, according to new data.

Statistics from PricewaterhouseCoopers (PwC) showed that between April and June this year, the figure dropped to 138.

This was down from 186 reported between January and March.

Commenting on this trend, PwC spokesman Stephen Broome said this is partly because the “real basket cases have fallen by the wayside”.

Speaking to the Independent, he stated that this has led to lenders taking a more supportive stance to businesses in the sector.

Mr Broome added that this is partly because more people have chosen to stay in the UK during the summer months rather than take a holiday overseas.

Meanwhile, the Institute of Chartered Accountants in England and Wales (ICAEW) has reported a surge in confidence among business professionals.

Michael Izza, chief executive of the organisation, said this suggests that the recession may now have come to an end.

Estimates from the ICAEW suggest that gross domestic product in England and Wales will rise by 0.5 per cent during this quarter.