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Business failures rocket in leisure industry
An unprecedented number of businesses in the hospitality and leisure industry are failing.
In the first six months of this year 329 more companies in the sector flopped – a rise of 16.3 per cent – compared with the same period in 2006.
Jo Howard, marketing director of the business information division at Experian, said: “Particularly worrying is the level of failures among the leisure and retail sectors as these tend to be barometers of the financial health of the nation.
“It could reflect a consequence of the general slowdown in consumer spending as the five interest rate increases have begun to bite, which means that we could see more failures in these sectors in the coming months.”
The news comes just months after a report by UHY Hacker Young found that hospitality companies account for 15.5 per cent of the UK’s annual figure of 150,000 business failures.
The report stated poor market research and financial planning as the main reason behind the flops.
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