Sales have continued to decline following the 10pm curfew with like-for-likes down 21.2% compared with the week before it was introduced,
According to S4labour, the online labour-scheduling management system from Catton Hospitality, like for like sales are down 21.2% on trade before curfews were put in place for the hospitality sector. Food sales fell 19.1% and drink by 23.2% on the fortnight before. London has been the worse hit with a 38.4% decrease in sales when compared with last year, whereas there has only been a 5.2% decrease in the rest of the country. S4labour also said it was worth noting roughly 10% of sites are still yet to open after lock-down measures were introduced. Chief product officer Richard Hartley said: “This level of decline is unprecedented and worrying for the industry, although the weather may have played a part. As the curfew has been introduced, diners and drinkers will start to head out earlier, as a closer look at sales shows a larger proportion of sales came in earlier.”
Not surprisingly more than 50% of late-night businesses, such as night clubs and bars have seen a further 60% drop in revenue since the curfew was implemented, The Night Time Industries Association (NTIA) said that 60% of businesses have started to make people redundant.
The Winter Economy Plan is not enough to support the sector according to the research with just under 50% of businesses saying that they will be making more than 60% of their workforce redundant due to reduced support and the current restrictions. NTIA chief executive Michael Kill said: “Our sector must not be under-valued, we need to challenge the government when restrictions result in the systematic closure of an entire Industry. In the coming weeks, without further support, we are facing a catastrophic collapse, which will see thousands of businesses and jobs lost.”
If your business finds itself between a rock and a hard place of needing to make redundancies but can’t afford to do it then a CVA may well be the solution.
Once a proposal is made and the creditors agree to have some of their debt paid back over time then the mechanism can allow big costs to be cut.
- Employees can be made redundant at no cost to the company
- Expensive premises can be vacated at no cost
- Onerous contracts can be terminated
- There can be no legal action against debts bound into the agreement.
In addition, the directors have full control of the company, unlike in administration, which almost always results in less return to creditors and a much smaller business if it is sold.