Food Wholesale
Conversely, food wholesale seems to be showing the start of a falling insolvency trend .
- 41 insolvencies in the second quarter 2023 representing a 34% reduction on Q1 and a 22% reduction compared to Q2 2022.
- However, the 96 insolvencies recorded in the first six months is a 20% increase over the first six months of 2022.
Hospitality
The Hospitality sector remains under pressure and insolvencies are still on the rise.
- The second quarter of 2023 saw 914 Insolvencies, a 7% increase on Q1 2023 and a 33% increase on the same Q2 in 2022.
- The sector so far this year has witnessed 1,764 insolvencies, up 31% on the first half of 2022.
The largest share of insolvencies is very much in the restaurant arena. Of the 914 insolvencies in the quarter, 599 were restaurants taking the total number at the end of the first six months of 2023 to 1,138 – a third more than the first half of 2022. The number of hospitality sector insolvencies in the first half of 2023 is nearly 15% of the overall number of insolvencies recorded in the first half of this year whereas it was just over 11% of the total insolvencies in the first half of 2022. Against a background of continued high inflation, particularly in food, eating and drinking out is increasingly becoming a luxury and the outlook here is continued high levels of insolvencies.
Travel
The travel sector (travel agencies and tour operators) seem to have shaken off the ravages of Covid and are very much reversing the insolvency trend.
- There were still 13 failures in the second quarter of 2023, but that was 62% down on the first quarter and 50% down on the same Q2 in 2022.
- Just 34 failures in the first half of 2023 is three quarters down on the first half of 2022.
We anticipate the return of the travel sector to start being reflected in improved financial statements in the coming months.
Travel and Storage
Finally, the travel and storage sector show increasing insolvency trends.
- 239 insolvencies in Q2 2023 is a 17% increase on Q1 and a 24% increase on the same Q2 2022.
- The first half overall has seen 437 Insolvencies, up 16% on H1 2022.
Within the sector, the majority of claims come from freight transport by road, which has seen 233 insolvencies, up 17% on H1 2022. Diesel costs have also had an impact although likely on a lag basis, and with prices coming down from last year’s highs following the Russia / Ukraine conflict, there’s potential for some easing in the latter half of the year. Driver shortages have largely, but not completely, been resolved but that has been at an additional cost. Air and water Transport see very little in terms of insolvencies, just 7 and 9 respectively, similar to H1 2022.
