{"id":279780,"date":"2026-04-18T09:12:33","date_gmt":"2026-04-18T09:12:33","guid":{"rendered":"https:\/\/dominiclevent.com\/blog\/?p=279780"},"modified":"2026-04-18T09:12:33","modified_gmt":"2026-04-18T09:12:33","slug":"more-hospitality-firms-forced-to-shut-even-before-iran-war","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/more-hospitality-firms-forced-to-shut-even-before-iran-war\/","title":{"rendered":"More hospitality firms forced to shut even before Iran war"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<header class=\"article-header \">\n<p>\n\t\t\t<time class=\"date-time__time\" datetime=\"2026-04-17T13:40:01+01:00\"><br \/>\n\t\t\tFriday 17 April 2026 1:40 pm\t\t<\/time><br \/>\n\t\t\t\t\t<span>\u00a0|\u00a0<\/span><span class=\"date-time__updated\">\u00a0Updated:\u00a0<\/span><br \/>\n\t\t<time class=\"date-time__time\" datetime=\"2026-04-17T15:27:01+01:00\"><br \/>\n\t\t\tFriday 17 April 2026 3:27 pm\t\t<\/time>\n\t<\/p>\n<\/header>\n<figure class=\"article-header-featured-image\">\n<p><img width=\"742\" height=\"495\" src=\"https:\/\/www.cityam.com\/wp-content\/uploads\/2025\/11\/GettyImages-170179379-e1762351591952.jpg?w=742\" class=\"media \" alt=\"GettyImages 170179379 could depict a general business scenario, such as a diverse team discussing strategy in a modern off...\" fetchpriority=\"high\" loading=\"eager\" decoding=\"sync\"\/><figcaption>Pubs and restaurants face &#8220;relentless&#8221; cost pressures <\/figcaption><\/figure>\n<p><!-- Ads Injected --><\/p>\n<p>The rate of corporate collapse in hospitality\u00a0surged in February in signs the sector was struggling to stay afloat even before the Iran war brought further cost pressures.\u00a0<\/p>\n<p>The number of accommodation and food service firms declaring insolvency jumped by 22 per cent to 270 in February, <a href=\"https:\/\/74n5c4m7.r.eu-west-1.awstrack.me\/L0\/https:%2F%2Fwww.gov.uk%2Fgovernment%2Fstatistics%2Fcompany-insolvencies-march-2026\/1\/0102019d9b2effb7-1034bb13-ca2b-44ec-8ef5-60db7ba962ba-000000\/YRHLzogSmCjzL93q_OrYVXpY9po=473\" target=\"_blank\" rel=\"noopener noreferrer\">according to<\/a> government data.<\/p>\n<p>This acceleration of the crisis facing hospitality businesses came even before the Iran war energy cost surge and April tax rises which two thirds of bosses <a href=\"https:\/\/www.cityam.com\/two-thirds-of-hospitality-firms-to-cut-jobs-as-april-tax-rises-suffocate-sector\/\" target=\"_blank\" rel=\"noopener noreferrer\">say<\/a> will force them to cut jobs.<\/p>\n<p>As many as 254 food and beverage service businesses were forced to shut in February, including 171 restaurants and food trucks, and 64 pubs.\u00a0<\/p>\n<p>More than 700 pubs have shut in each of the last three years, with the rate of closures in the sector having surged since 2022, when only 512 closed their doors.<\/p>\n<div class=\"newsletter-auto-inject\" style=\"margin: 20px auto;\">\n<div id=\"mc_embed_shell\">\n\t\t\t\t<link href=\"https:\/\/cdn-images.mailchimp.com\/embedcode\/classic-061523.css\" rel=\"stylesheet\" type=\"text\/css\"\/>\n<style type=\"text\/css\"><![CDATA[\n\t\t\t\t\t#mc_embed_signup {\n                        background: #fff;\n                        clear: left; \n                        font: 14px Helvetica, Arial,sans-serif; \n                        width: 100%; \n                        max-width: 600px; \n                        margin: 20px 0;\n                    }\n\t\t\t\t\t#mc-embedded-subscribe-form {\n\t\t\t\t\t\tmargin: 20px 0 !important;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-form-flex {\n\t\t\t\t\t\tdisplay: flex;\n\t\t\t\t\t\tgap: 0;\n\t\t\t\t\t\talign-items: center;\n\t\t\t\t\t\tmargin-top: -10px;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-form-flex input[type=\"email\"] {\n\t\t\t\t\t\tflex: 1;\n\t\t\t\t\t\tpadding: 2px 10px;\n\t\t\t\t\t\tborder: 1px solid rgb(18, 22, 23) !important;\n\t\t\t\t\t\tborder-radius: 12px 0 0 12px !important;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-form-flex input[type=\"submit\"] {\n\t\t\t\t\t\tpadding: 4px 10px !important;\n\t\t\t\t\t\tmargin: 0 !important;\n\t\t\t\t\t\tbackground-color: rgb(18, 22, 23) !important;\n\t\t\t\t\t\tcolor: rgb(255, 255, 255) !important;\n\t\t\t\t\t\tborder: 1px solid rgb(18, 22, 23) !important;\n\t\t\t\t\t\tborder-radius: 0 12px 12px 0 !important;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-banner-content {\n\t\t\t\t\t\tmargin-bottom: 15px;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-banner-content h2 {\n\t\t\t\t\t\tmargin: 0 0 10px 0;\n\t\t\t\t\t\tfont-size: 18px;\n\t\t\t\t\t\tfont-weight: 600;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-banner-content p {\n\t\t\t\t\t\tmargin: 0 0 10px 0;\n\t\t\t\t\t\tline-height: 1.5;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-banner-content ul,\n\t\t\t\t\t.newsletter-banner-content ol {\n\t\t\t\t\t\tmargin: 0 0 10px 20px;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-banner-content a {\n\t\t\t\t\t\tcolor: #0073aa;\n\t\t\t\t\t\ttext-decoration: none;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-banner-content a:hover {\n\t\t\t\t\t\ttext-decoration: underline;\n\t\t\t\t\t}\n\t\t\t\t\t.newsletter-banner-content img {\n\t\t\t\t\t\tmax-width: 100%;\n\t\t\t\t\t\theight: auto;\n\t\t\t\t\t\tmargin: 10px 0;\n\t\t\t\t\t}\n                    #mc_embed_signup #mce-success-response {\n                        color: #0356a5;\n                        display: none;\n                        margin: 0 0 10px;\n                        width: 100%;\n                    }\n                    #mc_embed_signup div#mce-responses {\n                        float: left;\n                        top: -1.4em;\n                        padding: 0;\n                        overflow: hidden;\n                        width: 100%;\n                        margin: 0;\n                        clear: both;\n                    }\n\t\t\t\t]]><\/style>\n<\/p><\/div>\n<\/p><\/div>\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\">\n<p>\n<iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/28573105\/embed#?secret=Ed78GZY6wF\" data-secret=\"Ed78GZY6wF\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/p>\n<\/figure>\n<p>Pub owners raged at Chancellor Rachel Reeves after changes made to business rates at the Budget \u2013 intended to make the tax fairer for hospitality and retail firms \u2013 ended up saddling thousands of landlords with soaring bills.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-iran-war-threatens-energy-bill-surge\">Iran war threatens energy bill surge<\/h2>\n<p>Reeves was eventually forced into offering a \u00a3300m emergency business rates relief <a href=\"https:\/\/www.cityam.com\/reeves-to-hand-pubs-300m-but-hotels-and-restaurants-miss-out\/\" target=\"_blank\" rel=\"noopener noreferrer\">package<\/a>, but landlords have said rising energy costs due to the Iran war mean their woes are unlikely to ease.<\/p>\n<p>The boss of the UK\u2019s oldest brewer, Shepherd Neame, <a href=\"https:\/\/www.cityam.com\/pub-industry-screaming-for-a-reset-amid-wave-of-closures-says-shepherd-neame-boss\/\" target=\"_blank\" rel=\"noopener noreferrer\">told<\/a> <em>City AM<\/em> the industry is \u201cscreaming for a reset\u201d and <a href=\"https:\/\/www.cityam.com\/shepherd-neame-braces-for-energy-price-shock-as-iran-war-drives-up-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">warned<\/a> his firm is bracing for higher energy bills.<\/p>\n<aside class=\"read-more read-more--has-media read-more-auto\">\n<div class=\"read-more__content\">\n<h5 class=\"read-more__label\">Read more<\/h5>\n<h4 class=\"read-more__title\">\n\t\t\t<a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/energy-bills-threat-recedes-but-retail-and-hospitality-remain-on-brink\/\" target=\"_blank\" rel=\"noopener noreferrer\">Energy bills threat recedes but retail and hospitality remain on brink<\/a><br \/>\n\t\t<\/h4>\n<\/p><\/div>\n<\/aside>\n<p>Some of the industry\u2019s bigger operators are insulated by long-term fixed-rate energy contracts, but the boss of JD Wetherspoon <a href=\"https:\/\/www.cityam.com\/wetherspoon-boss-tim-martin-hits-back-at-miliband-warm-beer-advice\/\" target=\"_blank\" rel=\"noopener noreferrer\">told<\/a> <em>City AM<\/em> he is having to \u201cstrain every sinew\u201d to avoid rising the price of beer.<\/p>\n<p>Trade body UKHospitality has said independent pubs \u2013 which may not benefit from fixed contracts \u2013 and those which are off-grid are <a href=\"https:\/\/www.cityam.com\/iran-war-independent-pubs-face-devastating-energy-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">vulnerable<\/a> to \u201cdevastating\u201d energy bill hikes.<\/p>\n<p>Saxon Moseley, head of leisure and hospitality at audit firm RSM, said: \u201cWhile bigger operators tend to be better insulated due to having stronger balance sheets and economies of scale to fall back on, it\u2019s the smaller, independent businesses that are struggling the most.\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-hotels-left-out-of-business-rates-life-raft\">Hotels left out of business rates life raft<\/h2>\n<p>Hotels are also facing rising costs, with 10 having shut in February while 16 accommodation firms collapsed in total in the month.<\/p>\n<p>Bosses at leading hotels and restaurants have <a href=\"https:\/\/www.cityam.com\/surinder-arora-hotels-should-not-be-excluded-from-tax-relief\/\" target=\"_blank\" rel=\"noopener noreferrer\">hit out<\/a> at the Treasury for excluding their sectors from the business rates life raft \u2013 which was offered only to pubs.<\/p>\n<p>Gordon Thomson, restructuring partner at RSM, said: \u201cRelatively weak sales in the hospitality industry along with relentless cost pressures have required some operators to explore restructuring options to optimise their trading position and to reduce their cost base.\u00a0<\/p>\n<p>\u201cIt\u2019s encouraging to see businesses taking action rather than burying their heads in the sand, but this highlights just how challenging it is to operate in the current environment.\u201d<\/p>\n<aside class=\"read-more read-more--has-media read-more-auto\">\n<div class=\"read-more__content\">\n<h5 class=\"read-more__label\">Read more<\/h5>\n<h4 class=\"read-more__title\">\n\t\t\t<a class=\"read-more__link\" href=\"https:\/\/www.cityam.com\/wetherspoon-sales-could-turn-flat-as-cost-pressures-brew\/\" target=\"_blank\" rel=\"noopener noreferrer\">Wetherspoon sales could turn flat as cost pressures brew<\/a><br \/>\n\t\t<\/h4>\n<\/p><\/div>\n<\/aside>\n<footer class=\"article-footer \">\n<div 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