Pubs and clubs facing threat of closure
(Reported in The Coventry Telegraph, 8 December 2008)
A leading insolvency expert has warned that many of Leamington’s pubs and clubs are in danger of closing because of the down turn in the economy.
Bosses at Cranfield Business Recovery, which was founded in Warwick’s and is now based in Coventry, feels the spa town’s night-time economy is especially vulnerable to the spending slump as it has an “over-supply” of watering holes .
More than eight pubs and bars are being wound-up very week in the UK, while more then 400 social clubs have shut down since the smoking ban was enforced in July 2007.
Brett Barton, director and Licensed Insolvency Practitioner of the firm, revealed he’s already started advising several businesses in the area.
He said: “We recently handled the closure of two high-profile clubs which were well established, trading for several years in Leamington. We have also advised others in recent times. Any town that has an over-supply of pubs and bars will find that more will be closing over the coming months. I think Leamington fits that pattern.”
He feared that other may go to the wall as belt-tightening, especially amongst students, leads to people drinking cheaper booze at home. “It’s very hard to thrive in a crowded market whatever the sector, but especially in food and beverage. It is essential that bars make the most of every opportunity to win business whether that involves widening their appeal, looking for new markets or changing their offer.
“There are bars and restaurants in Leamington which have thrived over many years but they have maintained their quality and have sometimes had to change with the times. It takes time for the leisure trade to pick up at the end of any dip in the economy and I can easily see this downturn lasting for the next 18 months to two years.”
Scott Temple, deputy manager of The Jug and Jester in Bath Street, rejected the claims, saying the opposite was true for his business. “If anything our sales have picked up, but that’s because we cater for students. Admittedly there’s a lot of competition out there, but I’ve not heard of anyone struggling lately.”
