THE latest analysis into corporate insolvencies has revealed a bad year for hospitality and leisure in the region.
The industry is significantly worse off compared to this time last year with a 30% increase in insolvencies in the last quarter of 2011 compared to the last quarter of 2010.
There were 375 insolvencies in the hospitality and leisure sector in the fourth quarter of 2011 compared to 289 in the same quarter of 2010 according to PwC.
In 2010, Q4 saw a drop in insolvencies from Q3 but in 2011, there was a 12% increase.
Sean Hamilton, director of business recovery in the North-east said: “Q4 would normally be seen as a good time for bars and restaurants because of the festive season so it is worrying that both these sectors saw a marked increase in the number of insolvencies.
“The post Christmas blues are always a challenge for restaurants and bars but some businesses are still performing well and these are often those that have focussed on ensuring that they understand what their customers want and deliver without fail.