An increasing number of businesses including pubs, shops and supermarkets across the UK are being forced to close down due to the cost of living crisis.
According to figures released by accountancy group UHY Hacker Young earlier this week, the number of pub and bar companies calling last orders rose from 280 in 2021 to 512 last year.
The report said pubs and bars have faced rising energy and other costs and concerns over falling sales.
The cost-of-living crisis and interest rate rises have affected spending on drinks and meals in pubs, while rail strikes have stopped punters from travelling into city centres.
Earlier this month, card and stationery retailer Paperchase collapsed into administration, putting 820 jobs and 106 stores at risk.
Wetherspoon and Marks & Spencer also announced closures as the cost of living crisis deepens.
Paperchase
Paperchase closed its website yesterday after announcing the company would chase trading.
The stationary retailer told shoppers the news in an email earlier this week and said until the closure of the site, it was to offer at least 30% off “almost everything”.
Paperchase told shoppers that it was with a “heavy heart” that it was closing its online store, and thanked those who gave the brand “support and loyalty” over the years.
The company fell into administration last month and is now in the process of closing its 106 remaining stores which will affect 820 of its staff.
The retailer’s physical stores are to remain open for now and at the moment are offering discounts of up to 50% on certain items.
It also told customers that it is to continue to receive new stock for the foreseeable, however, it warned shoppers that “when it’s gone it’s gone”.
New Look
Some 500 jobs are at risk of being cut at New Look at its lead distribution centre in Lymedale, Newcastle Under Lyme, according to Drapers.
The jobs cuts come as the high street retailer has scrapped its night shifts at the site.
This is due to New Look having reduced the number of its stores in the UK from around 800 several years ago, to around 440 now alongside a reduction in sales.
This site employs around 1,200 staff and those affected will now enter into consultations about potential redundancies which are to be announced in mid-May.
However, the high street giant has said that the closures are part of its “normal course of business” as new sites will be opening also.
It added that it is working to find “suitable alternative roles” for the staff that will be affected by their stores closing.
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Wilko
There will be around 400 job losses at Wilko and will include assistant store managers, retail supervisors, head office managers and call centre workers, the GMB Union has announced.
The household and garden retailer, which employs 16,000 people in total, has told staff it plans to reduce hours for team supervisors in 150 of its 401 stores.
This will be comparable to around 150 full-time equivalent job losses.
The cuts also include around 150 assistant store managers and about 95 workers from its contact centre in Worksop, Nottinghamshire.
TK Maxx and Homesense
TK Maxx and Homesense are also closing stores, with the Edinburgh site shutting on Wednesday this week due to the landlord pulling the lease.
Meanwhile, the Homesense site in Manchester Arndale Centre will close on Wednesday, March 1.
Swansea will also lose its Homesense store, currently located at Parc Fforestfach, which be relocated by the end of March.
A spokesperson for TK Maxx said: “Our senior managers have been in store supporting the team.
“We’re currently in consultation with all affected associates and our intention is that all associates will be offered roles in other local TK Maxx or Homesense stores.”
House of Fraser
House of Fraser was saved from collapse by Sports Direct owner Mike Ashley back in 2018, but now it is set to close more stores across the UK – despite only having 30 sites.
The high street department store is expected to close its Cardiff site after it recently launched a major clearance sale.
And the Birmingham site is also expected to be at risk of closure after it was converted into an outlet store.
No official announcement has yet been made by House of Fraser regarding the closures.
B&Q
The popular DIY chain has announced that it is to close eight of its sites in Asda stores within the next few weeks.
B&Q staff will be offered alternative roles in nearby stores, so no jobs will be lost as a result.
The home improvement store added that the decision was made after an “intensive review” of the test format.
Marks & Spencer
Marks and Spencer is proposing the closure of a number of stores across the UK months after its announcement of 67 larger shop closures.
The latest plans include consultations on a number of stores closing and others relocating as the company looks to focus more attention on its grocery offerings.
The 67 closures announced last October came as the supermarket focuses more of its attention on M&S Simply Food.
Plans also include opening 104 more Simply Food shops – taking the total number of its food-only sites from 316 to 420.
The company is planning for changes to be complete in five years, although this could be reduced to three, as it aims to save around £309million in rent costs.
Wetherspoon
Wetherspoons is closing multiple pubs this month after announcing that 19 pubs have been sold off and 35 additional hostelries have been put on the market.
The pub chain’s sales fell by 1.1%, it reported on November 6, 2022, in comparison to trading before the pandemic in 2019.
The British Beer and Pub Association estimated 4,500 pubs in the UK were on the verge of reducing trading hours over winter.
Following the pandemic period, which included lockdowns, many pub and bar companies have very little savings or the capacity to borrow more and the current economic downturn has been the final push into insolvency for some, the accountancy group said.
Peter Kubik of UHY Hacker Young said: “It’s deeply concerning that so many pubs and bars are closing their doors. In addition to the financial consequences for owners and employees, the loss of a pub can be felt quite keenly by the community.
“This is a particularly difficult period for pub and bar owners, who find they need to spend more and more while earning less and less. Following an extended period of lost revenues during the pandemic, the cost-of-living crisis has been the final nail in the coffin for many.
“Perhaps the Government should consider what it can do to alleviate pressures, for instance, by extending the energy bill relief scheme for the hospitality sector.”
Subway
Subway is looking at possibly selling off its business, in a move that could potentially affect thousands of its restaurants.
The popular sandwich chain announced on Tuesday that its shareholders were exploring a sale of Subway but did not share much more.
The company did not indicate how long the sales process could take or whether there were any interested parties at the moment, it also said it couldn’t confirm if a sale would actually take place.
The investment banking giant JP Morgan is advising Subway on the potential sale.
In the statement, the sandwich chain said: “The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience.”
Barclays
Barclays has announced the closure of 15 branches across the country – meaning over 100 banks are going to shut down so far this year.
The bank is set to close 14 branches across England and one in Wales from late April to the first few days on May.
Sites in London, Gosport, Bridgwater and St Helens are among those shutting down over just a few days.
Barclays has already announced 15 closures at the beginning of January.
NatWest
NatWest is to shut 23 more bank branches this year in another blow for the high street.
The closures, which are scheduled to take place from April to June, are down to more people banking online.
A NatWest spokesperson said: “As with many industries, most of our customers are shifting to mobile and online banking, because it’s faster and easier for people to manage their financial lives.
“We understand and recognise that digital solutions aren’t right for everyone or every situation, and that when we close branches we have to make sure that no one is left behind.
“We take our responsibility seriously to support the people who face challenges in moving online, so we are investing to provide them with support and alternatives that work for them.”
