Ailing pub businesses not addressing problems in time

Many pub businesses facing commercial collapse have not helped themselves by failing to address their problems in time, according to latest research.

David Pattison, a senior analyst at market research agency Plimsoll said of 443 pub operations classed as being in 'danger businesses' - eg, close to collapse - many had been experiencing problems for a long time.

"The reality is for many of these danger businesses their problems go back years, certainly long before the current UK slow down, yet they have failed to fix their problems," he argued.

"Our analysis is clear, not all of these 443 businesses will survive. Of those who do, very few will be in their current shape and many will be in the hands of new owners.

"This further supports the argument that despite the obvious tragedy of job losses, livelihoods lost and the pain of a business in decline this period is inevitable and can only be good news for the market in the long run."

Pattison pointed to the airline industry as showing what could happen to the pub trade.

"The failure of XL Leisure is has turned out to be the best thing that could have happened to the industry as it has freed up capacity. The public houses, bars & inns market too will see winners emerging out of the crisis.

"There are 194 terrific companies who can compete fiercely on price, and are largely debt-free while holding their margins.

"Most are operating at the height of productivity. These will be the one's to watch in the next period."