Restaurants, cafes and other food outlets are heavily represented in the latest insolvency reports too, a trend which could reflect the recent well-publicised rise in food prices. Even large companies such as catering giant Compass have been affected by the consequences of a weaker pound.
Hasib Howlader at Hudson Weir said ‘Brexit is unlikely to bring good news for small businesses and it seems now it’s just a question of how bad it’s going to be. With more than 40 per cent of small businesses struggling to survive beyond five years even in a pre-Brexit climate, it’s now more important than ever for small businesses to be looking for warning signs that their business may be unhealthy. If cash flow is a problem, and you can no longer pay your bills as they fall due, the earlier you speak to an insolvency practitioner the better.’
Even though businesses are always at the mercy of circumstance, it’s possible to mitigate the effect of uncertain situations like Brexit.