Hospitality accounts for 10% of UK administrations in H1

The hospitality sector accounted for 10% of all UK administrations in the first half of 2025, making it the second worst-hit industry, according to analysis by law firm Shakespeare Martineau.

A total of 783 businesses filed for administration between January and June, down 11% from 879 during the same period last year. However, the figure remains 3% higher than in 2023, suggesting companies continue to face significant pressures despite signs of stabilisation.

Altogether, hospitality, retail, construction, real estate and manufacturing accounted for 60% of all administrations. 

Retail was the hardest-hit sector, with filings up 29% to 153 from 119 in 2024, according to data from The Gazette Official Public Record, while hospitality administrations rose slightly to 80 from 78, reflecting continued pressure on household incomes and discretionary spending.

Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “While the year-on-year drop in administrations is worthy of note, the overall picture for business remains challenging.

“With 783 appointments being made, we are still seeing more businesses enter administration than in 2023 and distress remains widespread across multiple sectors and regions.”

The North West overtook Greater London as the region with the most administrations, recording 165, up 11% on last year. Greater London filings fell 17% to 158. Yorkshire and the Humber saw a sharper fall of 36% to 63, while the South East and West Midlands recorded 92 and 56 respectively.

Taylor added: “The North West becoming the worst-hit region is a significant shift. This suggests that distress is becoming more geographically widespread, no longer concentrated in Greater London and the South East. Local economic factors – including legacy pandemic debt, delayed investment and supply chain costs – continue to weigh heavily.”