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Monday, 9 July 2012

Wet weather bad for some businesses

The soggy summer is unfortunately going to have a knock on effect on businesses with some sectors going to be hit harder than others.

Retail
The revival for the high street maybe short lived as poor weather has led to a fall in footfall for the last 3 months when compared to last year.  Clothing shops have ordered summer wear earlier in the year but there seems to have been a surge in demand for wellies and brollies rather than light summer dresses!  BBQ's and outdoor goods have suffered falling sales. Most of these outdoor goods are stocked by large out of town outlets so they can absorb this fall quite easily.

Entertainment
Festivals have been in the news but organisers sold most of the tickets when it was warm and sunny in the Winter...!  Next year might be different especially as some observers have said the outdoor festival market is peaking and some tickets have not been sold. 

Camping and day tripping
This industry is certainly suffering and sales in Wales have been very poor.  This is most likely to be the hardest hit industry.

Sports events
Again this part of the economy is likely to suffer but many tickets are sold long in advance.  It is the small businesses that rely on visitors spending in the venues that may suffer.

Pubs
Punch Taverns reported at the end of June like for like sales falling by 6% with the weather partly to blame.

Debts that might have built up as a result of unexpected circumstances, and a month's worth of rain in 24 hours could be classed as such, could be dealt with in a CVA.  As long as the business is viable then creditors should be supportive of a proposal that allows the business to spread out some of the debts over a year or more could be the best option

Contact us for details of how a CVA could help you.



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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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