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New figures have revealed that the number of insolvencies in the pub industry fell in the second quarter of 2010.

The research, released by insolvency firm Baker Tilly Restructuring and Recovery, show that just 115 pubs were declared insolvent during the second three months of the year, compared to 124 in the first quarter.

As fewer pubs are collapsing, production rates look more likely to remain consistent – news that will be welcomed by the brewing industry as a whole.

But there could be some less good news for the pub industry – the VAT hike.
Mark Wilson, partner at Baker Tilly, warned brewing officials that next year’s VAT hike could hit market sales.

"The industry should remain cautious, particularly as the sector has been put on notice for the impending VAT hike. While they have been given time to prepare, there is likely to be some impact once this bites in the new year," he added.

The research also found that overall beer sales were up 2.9 per cent compared to last year, with supermarket sales increasing by 14 per cent.

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Dalziel Park and Conference Centre in Motherwell has entered administration due to its failure to satisfy creditors.

The hotel and conference centre has four conference suites, as well as wedding facilities and a golf course. It is currently owned by Mario Rea and is a popular venue for weddings in the area.

It is now in the hands of KPMG, who have confirmed that Dalziel Park will operate under their control whilst a buyer is sought for the hotel’s business and assets.

The administrators have confirmed that the business and assets have not yet been put up for sale due to certain ongoing legal issues but it is expected that the sale of the hotel will be advertised in the near future.

Blair Nimmo is joint administrator and head of restructuring for KPMG in Scotland. He commented: "The potential buyer will acquire an established business which has a loyal clientele and strong catchment area for customers.

He went on to say that KMPG believes they will not have trouble finding a buyer for the venue once the marketing exercise for the sale has gone fully underway.

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Exeter's Northcott Theatre has fallen into administration following a trustees' meeting on Wednesday evening, leaving a question mark over its future.

The Northcott, which is on the site of the University of Exeter, opened its doors on 2 November 1967, with Shakespeare's The Merchant of Venice. It has been serving up performances to east Devon's theatre-going public ever since, with the exception of 2007 when it closed for most of the year for a major £2.1m refurbishment.

The trustees of the theatre released a statement indicating that they had to put the theatre into administration as they had been, "presented with financial information this week which showed the theatre to be insolvent." Geoff Myers, chairman of the trustees, added that the decision had been made "with a heavy heart."

The theatre has been reliant on funding from the University of Exeter, various local councils and the Arts Council of England.

The Arts Council has voiced its disappointment over the decision, condemning it as premature. According to the ACE, things seemed to be ok until the end of last year when they received a copy of the theatre's quarterly accounts. However, they received word from the Northcott in late January that they were having difficulties and sent in an accountant to investigate, as well as advancing funding to help keep the theatre afloat.

It appears that the trustees made the decision to enter the theatre into administration before the accountant had filed his report. No wonder the ACE is not happy.

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Get set for a bloodbath on your local high street after Christmas: a retail bloodbath of the insolvency kind, that is.

This year's drop in spending, alongside rising unemployment, means there's another wave of administrations on the horizon, much like the one witnessed in the opening months of 2009.

You'll remember the slew of closures that saw British high streets say goodbye to Woolworths, the music outlet Zavvi, childrenswear chain Adams and tea and coffee merchant Whittard of Chelsea. Book store Borders is one retail casualty that didn't even make it as far as the festive period, never mind through it.

R3, the industry body for insolvency practitioners, says the situation will be propelled by creditors "biding their time" until after the peak trading period before they call in loans. There's January's VAT increase to consider too.

The body's president, Peter Sargent, offers the sobering thought: "While it would be comforting to think that the worst of the downturn is over, it's worth remembering that insolvency peaks after a recession ends."

And his advice for anyone who owns a retail outlet? "We urge retailers to seek advice early when there is a better chance of rescue, rather than desperately clinging on, hoping that Christmas will cure all ills."

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More corporate insolvencies are the last thing the small business world wants to see, so what are company owners doing to keep bankruptcy from their doors? They're working 65 hours a week in some cases, that's what.

Number crunchers at Abbey and Alliance & Leicester Business Banking have been looking into the lengths small-firm owners are going to in a bid to keep their businesses afloat. And it turns out one in six are reaching the 65-hour mark most weeks.

Overall, just over a third agree they're putting in longer hours than they were a year ago, with the average boss clocking up 47 hours per week. That's just an hour below the European Working Time Directive's maximum.

Abbey and Alliance & Leicester's Paula Ickinger notes the dire effect the phenomenon is having on the work-life balance of business bosses: "Not only do business owners have a very tough economic climate to contend with, they've also been burdened with mounting piles of red tape and bureaucracy at the same time, which can distract them from the running of their business."

They need as much help as they can get, she concludes – not least from their business banks.

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Aspiring entrepreneurs take note: Britain faces a surge in corporate insolvencies as businesses' "time to pay" arrangements with HM Revenue & Customs (HMRC) begin to expire, the trade association for insolvency practitioners has claimed.

R3 says more than 200,000 companies signed up to the programme when it was introduced in last year's pre-Budget report, delaying payments totalling around £3.6 billion.

Governing national insurance contributions, VAT, corporation tax and other levies on firms, the initiative was designed to cut some slack for organisations feeling the brunt of the recession.

The deal was keenly taken up by small-business owners such as those buying pubs or coffee shops, which have particularly suffered due to taxation in recent years.

R3's president, Peter Sargent, says the trade body is expecting to see nearly 30,000 corporate insolvencies this year, up from 23,000 in 2008.

"Company directors must plan for the time when the deferral ends and make sure that they can pay the final bill," he states.

"Those that don't run a serious risk of adding to what we fear will be a glut of failures when the time-to-pay concession runs out and the recession continues."

R3 reckons a unique factor in the current recession is HMRC's "lenient stance" on business debt, with the provision of "extended breathing space" for firms to sort out their cash flow problems.

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