An industry sector expert has claimed that the UK pub sector could be hit by a “bloodbath” and a third of the sector are at “risk” if lockdown measures last until Christmas.
Chief executive of UK Hospitality, Kate Nicholls, has called on the government for intervention “as a matter of urgency.”
She told the Treasury Select Committee some pub landlords are facing legal action as they are unable to pay their rent.
This comes as Michael Gove said last week that pubs will be the last businesses to re-open once lockdown measures are reduced.
The government have introduced a lease forfeiture mortarium for three months to prevent people being kicked out.
Nicholl said this is not taking any effect “across a large swathe of the hospitality industry.”
She said that “many pubs are seeing the first threats of winding up petitions being waved around,” where they have missed rent payments.
“If we don’t get a resolution at a global level, if you rely on landlords and lessees to sort it out themselves, it will be a bloodbath come June when we have the next quarter rent due.”
She added, “It is undoubtedly the case that we are not going to be able to save every business and we are not going to be able to save every job within hospitality.
“If we get the intervention, we are talking about… I have the optimism we will be able to return relatively quickly to almost full strength in the sector.
“But if we don’t get that intervention on rent and we are forced to remain closed until Christmas, then I think you could put a third of the sector at risk.”
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