Examining the possible causes of business failure in British public houses

Abstract

The aim of this study is to identify some of the reasons for the failure of firms, particularly within the licensed trade, so as to offer some advice to assist practitioners. This will be done by a review of the general literature on business failure, looking particularly the small and micro‐business. The trading conditions within the public house sector are examined, and the importance of business knowledge is recognised. In addition, several people who have experienced serious financial problems have offered their comments. These include one owner of a free house who was obliged to close the doors; two tenants and one lessee whose businesses were repossessed; one lessee who suffered serious financial difficulties but survived, and a wholesaler who went into receivership. It is not suggested that these are representative of the trade as a whole. However, an expert in insolvency, with much experience of pub failure, added his views, so that some conclusions could be drawn.

Citation

Pratten, J.D. (2004), "Examining the possible causes of business failure in British public houses", International Journal of Contemporary Hospitality Management, Vol. 16 No. 4, pp. 246-252. https://doi.org/10.1108/09596110410537405