The UK’s insolvency curve is steepening, and the hospitality sector is clearly facing the brunt. Since January, insolvencies have surged nearly 20%, with bars, restaurants, and hotels struggling to stay afloat.

The summer offered no seasonal relief. Between June and July, insolvencies spiked by 6.7%. Contrary to the relief expected, this was the sharpest monthly rise of the year followed by another 5% jump in September. As the Autumn Budget looms, hospitality leaders are hoping for more than rhetoric. They’re looking for lifelines in an environment where resilience alone is no longer enough.

Key Takeaways

• Lack of government support and funding will push more businesses into administration
• Rising costs and weakening demand are shortening creditor patience, pushing more businesses into creditor-led liquidations and Creditors’ Voluntary Liquidations (CVLs)
• By offering quick, credible deals with minimal friction, buyers can beat competition by securing premium opportunities at more favourable terms

Amid economic uncertainty, early visibility is everything. Stay ahead of the curve by accessing real-time hospitality insolvency data and off-market acquisition leads at Administration List.

Rising Vulnerabilities in Hospitality

The pressure on UK hospitality is relentless, and for many operators, survival is no longer an option. Rising food costs, energy bills, and labour expenses, including this year’s higher National Insurance contributions are consuming what little margin remains. At the same time, falling consumer confidence means fewer nights out, emptier tables, and shrinking revenues.

For smaller independents, these conditions are proving lethal. Without the financial cushioning of large chains, many are simply running out of road. The result? A wave of insolvencies rippled across the sector. This includes boutique hotels, family-run pubs and mid-tier restaurant groups.

The numbers tell the story: more than 111,000 hospitality jobs are projected to be lost by November’s Budget, the direct fallout of rising operational costs and reduced demand. The sector’s cumulative burden, £3.4 billion in extra annual costs since last October’s fiscal changes is forcing even once-resilient businesses to close their doors.

Hopes from the Autumn Budget

As calls for relief grow louder, business leaders are urging the government to act — from reducing employer NIC contributions to reforming business rates and incentivising consumer spending to revive footfall. But with the Chancellor facing intense fiscal pressure, substantial intervention appears unlikely.

This lack of support is already visible on the ground. Nearly half of Brits say their local high street has deteriorated over the past year, according to UKHospitality. This is a clear reflection of the strain on small and mid-sized operators. Rising tax and cost burdens are eroding working capital, forcing many firms to divert every available pound toward survival rather than reinvestment.

For the insolvency landscape, this means one thing: a sustained rise in financially exhausted but asset-rich businesses, particularly across retail, leisure, and hospitality. Without policy relief, more viable firms will slide into administration or liquidation — presenting a widening pool of acquisition targets for investors ready to act before government rescue ever arrives.

How to Find the Opportunity in Insolvencies

Expect a deeper, faster, and more clustered rise in hospitality insolvencies, concentrated among small/independent operators. This will further produce a continuous stream of both asset-only liquidations and short-window going-concern sales. Crucially, this wave will also trigger second-round insolvencies among local suppliers and service providers, creating multi-layered deal flows for buyers who are organised to act within days, not weeks. Here are few scenarios that can help you stay ahead

1) Insolvency mechanics will shift: Rising costs and weakening demand are shortening creditor patience, pushing more businesses into creditor-led liquidations and Creditors’ Voluntary Liquidations (CVLs). Alongside these, a smaller but growing stream of quick administrations and pre-packs will emerge where rescue is still viable. Investors should be ready to operate on both fronts — asset auctions for liquidations and rapid pre-pack negotiations for viable turnarounds. Running parallel sourcing pipelines for both processes ensures you capture opportunities across the full insolvency spectrum, from asset-only disposals to going-concern sales.

2) The cluster effect: Insolvencies rarely occur in isolation. Failures tend to ripple through local networks of suppliers, distributors, and nearby operators — particularly in hospitality and retail. When one business collapses, related firms in the same supply chain or high-footfall area often follow. For investors, this creates the chance to buy strategically within a cluster. Acquiring interconnected assets — such as a failed restaurant alongside its supplier, or multiple leases within a 20–30 mile radius — allows for cross-unit synergies and greater cumulative value. Targeting clusters rather than single sites can unlock operational and financial efficiencies that isolated purchases cannot.

3) Asset-class arbitrage: Not every insolvency presents a full business acquisition — value lies in matching each asset class to its best monetisation route. Commercial kitchens and fixtures can be flipped quickly through auctions or resale platforms; leaseholds and goodwill assets benefit from a medium-term relaunch over six to eighteen months; while brand IPs, customer databases, and franchise units lend themselves to roll-up or consolidation strategies over two to four years. To extract full value, investors should prepare dedicated playbooks and buyer channels for each asset category, ensuring the right exit plan is paired with each acquisition type.

4) Lender pullback = leverage window: As banks and private funders tighten credit, sellers and insolvency practitioners increasingly prioritise certainty over price. This dynamic gives prepared buyers significant leverage. Speed, clarity, and proof of funds often outweigh a marginally higher offer. To capitalise, investors should develop a “pay-now” toolkit — including pre-approved funding, a short-form NDA, and a concise bid template. By offering quick, credible deals with minimal friction, buyers can secure premium opportunities at more favourable terms before slower competitors enter the picture.

5) Operational uplift = immediate value: Buying distressed assets is only half the equation — real value emerges through rapid operational improvement. Investors who can execute quick operational turnarounds will outperform those who simply hold assets. Strategies such as simplifying menus, centralising procurement, or converting underused sites into dark kitchens or hybrid spaces can quickly restore margins. Offering a two-page operational improvement plan alongside your bid demonstrates readiness and builds confidence with insolvency practitioners and sellers, often helping you win preferred-buyer status.

Which Businesses Went Filed for Insolvency Recently?

Cote Brasserie: Côte Restaurant Group has been acquired by The Karali Group, the multi-national hospitality operator led by Salim Janmohamed OBE and Karim Janmohamed. The deal marks a new chapter for the French brasserie chain, which had been exploring strategic options in recent months to secure its long-term future.

Earlier this year, Côte engaged advisers to assess potential capital injections or a sale. The business was previously purchased by Partners Group in 2010 for £55 million. The Karali Group operates significant hospitality franchises across the UK and internationally. Its portfolio includes being the UK’s largest Taco Bell operator and the master franchisee for Marugame Udon in the UK and Ireland. The group also previously held the position of the UK’s largest independent Burger King franchisee.

George Hotel, Inveraray: A £3 million rescue deal has saved the George Hotel in Inveraray, preserving 43 jobs and securing the future of one of Argyll and Bute’s best-known family-run establishments.

The hotel, owned by the Clark family for 165 years, entered administration earlier this year due to historic debts that severely strained cash flow. Following strong interest from 51 potential buyers, Fyne Hospitality, led by Charlie Maclachlan and Sam Wignell, has completed the acquisition. Maclachlan described the George as “the beating heart of Inveraray,” while Wignell added that the new owners’ vision is to preserve the hotel’s heritage while elevating the guest experience.

Administrator Thomas McKay of Begbies Traynor said the deal represented the best possible outcome for staff and the local community, thanking the Clark family, employees, and residents for their support throughout the process.

In insolvency, timing isn’t just important — it’s everything. The best deals often surface and vanish within days. A winding-up petition can turn into liquidation almost overnight, and a Notice of Intention usually gives investors just one to four weeks to act. That’s why the fastest buyers consistently win.

Administration List gives you that speed advantage. Our platform tracks every UK administration, liquidation, and winding-up petition in real time — so you see opportunities as they emerge, not weeks later when they’re already gone. With instant alerts, direct insolvency practitioner contacts, and full case details, you can evaluate, bid, and fund within 72 hours — well before competitors even know what’s happening.

Read more about how to successfully turn around a struggling business

What to read next:

• Due diligence guide
• Funding acquisitions
• Buying businesses with existing employees
• Minimising risk in insolvency acquisitions

External Sources:

• UK Hospitality