An insolvency specialist has warned pubs, restaurants, and shops cannot afford to “take their eyes off the ball”, even if they are getting a cash boost during the World Cup.
Lawrence King, director at insolvency practice Antony Batty acknowledged the short-term benefits of increased trade during the competition but urged businesses to seek qualified advice if they are under financial pressure.
Speaking to the Oxford Mail, King, whose company is based near the city, said: “England’s progression in the World Cup is a welcome boost for everyone, including hospitality providers.
“According to Voucher Codes’ World Cup Spending Report, football fans are expected to spend almost £900m across hospitality venues during the World Cup this summer, which is more than double the £442m generated across hospitality during the 2022 tournament.
“A staggering £536m alone will be spent on drinks and a further £361m on food.
“However, this is a short-term lift for a sector which has faced almost £7bn of tax rises through VAT, business rates, and minimum wage over the course of the past two budgets.”
King added: “Hospitality closures are sadly forecast to hit six a day this year and the broader economic backdrop remains incredibly challenging for all businesses, with construction and retail facing similar levels of pressure as hospitality.
“Political uncertainty regarding the intentions of the next prime minister will also continue to affect consumer and business confidence, offsetting any benefits of stabilising inflation and the hold in interest rates.
“It is therefore vital that businesses seek qualified advice if they are facing financial pressure.”
Early advice can help struggling companies assess cash-flow exposure, understand their legal obligations and engage with lenders, insurers, and suppliers, enabling them to explore restructuring options before liabilities become unmanageable.
King added: “When your business is struggling it can be difficult to talk about, but consulting experts can result in positive action which can prevent insolvency and ultimately protect the business, its customers, and its staff.”
