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Number of bar and pub companies going bust soars by 31%, shows research
The number of bar and pub companies going bust has soared by 31% in the last year, according to research by Top 22 accountancy firm Wilkins Kennedy.
The research found that, despite the recovering economy, 130 bar companies went bust during the third quarter of 2010 compared with 99 during Q3 2009.
Over the last quarter alone, the number of bar and pub companies going bust increased by 15% from 113 during Q2 2010 to 130 in Q3 2010.
Anthony Cork, director at Wilkins Kennedy, said: "Despite growing economic recovery, bar companies continue to collapse at an increasing rate." "As they were about to embark on the busy Christmas trading period, the most profitable time for this business, it is surprising that lenders are calling time. This lack of confidence from lenders is worrying news for the industry." "When well-established brands like Balls Brothers go under in the lead up to Christmas, alarm bells start ringing." Wilkins Kennedy says that further legislative burdens will cause more disruption for pub and bar companies in the coming months as the Government's Police Reform and Social Responsibility Bill comes into force this month, imposing a Â£4,500 levy for bars and pubs that serve alcohol after midnight without a correct licence. New laws will also allow residents who live outside the immediate vicinity of a pub, bar or club to challenge its opening hours. Current legislation only allows this right for direct neighbours of the establishment to challenge the pub or bars opening hours.