{"id":71047,"date":"2023-07-17T11:37:07","date_gmt":"2023-07-17T11:37:07","guid":{"rendered":"https:\/\/www.grocerygazette.co.uk\/?p=71047"},"modified":"2023-07-18T13:24:35","modified_gmt":"2023-07-18T13:24:35","slug":"food-and-drink-business-bust","status":"publish","type":"post","link":"https:\/\/www.grocerygazette.co.uk\/2023\/07\/17\/food-and-drink-business-bust\/","title":{"rendered":"Number of food and drink businesses going bust soars in first half of the year"},"content":{"rendered":"


\nThe number of food and drink businesses that have gone bust has soared in the first half of 2023, amid rising inflation and increased supply chain costs.<\/p>\n

According to new figures from advisory firm<\/a> Kroll, more food and drink businesses have collapsed in the first six months of the year than in the whole of 2022.<\/p>\n

The sector recorded 56 administrations to the end of June, compared with 53 in 2022.<\/p>\n

Kroll put the increase down to the rising cost of borrowing,\u00a0supply chain\u00a0issues, inflationary pressures and falling consumer spending.<\/p>\n

For example, Meatless Farm fell into administration earlier this year after its desperate search for new investment, but was saved by meat-free startup VFC<\/a>.<\/p>\n

However, across all industries, insolvencies increased from 429 in the first half of 2022 to 618 this year, with the sector sitting behind construction, manufacturing and retail.<\/p>\n

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Kroll MD, Benjamin Wiles, told The Grocer<\/a>: \u201cWe always see more administrations in the construction, retail and the hospitality sectors. They\u2019re all affected by cost inflation, supply chain issues as well as wage and labour challenges.<\/p>\n

\u201cBut what\u2019s been interesting so far this year is to see the massive spike in the food and drink manufacturing sector.<\/p>\n

“Many of these companies are highly leveraged due to the impact of Covid and are also affected by cost inflation and energy costs.”<\/p>\n

He added: \u201cWhen you factor in higher borrowing costs and a lack of working capital, it\u2019s proving tricky for businesses in this sector.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The number of food and drink businesses that have gone bust has soared in the first half of 2023, amid rising inflation and increased supply chain costs.<\/p>\n","protected":false},"author":50,"featured_media":54333,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3926,1,4869],"tags":[4945,2436,4141,13219,3946,5234,13991,4069,2769,947],"_links":{"self":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts\/71047"}],"collection":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/comments?post=71047"}],"version-history":[{"count":6,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts\/71047\/revisions"}],"predecessor-version":[{"id":71057,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts\/71047\/revisions\/71057"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/media\/54333"}],"wp:attachment":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/media?parent=71047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/categories?post=71047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/tags?post=71047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}