One in four Scottish pubs could close in next year

By PETER RANSCOMBE
Published on 01/10/2012 09:50

A quarter of Scotland’s pubs and a third of its restaurants are at risk of closing in the next year as cash-strapped customers feel the economic pinch.

Some 625 restaurants and 288 pubs could close their doors for the final time in the 12 months ahead, according to research by R3, the insolvency practitioners’ trade body, using the Bureau van Dijk (BvD) “Fame” database.

The percentages are higher than the 21 per cent of Scottish businesses in general that are likely to close in the year ahead and the 23 per cent of UK firms.

John Hall, Scottish R3 council member, said: “These figures are shocking but perhaps not surprising.

“We have already seen that the retail and hotel sectors are vulnerable so it is to be expected that other areas of discretionary spending such as restaurants and pubs will be susceptible to the continuing economic downturn and lack of confidence among Scottish consumers.

“Individuals are worried about the security of their jobs, of their homes, and of their future finances in the form of pensions.”

News of the predicted closures comes just weeks after a report by Carling-brewer Molson Coors warned that one in five Scottish pubs had closed in the past five years.