A POPULAR pub chain has gone into administration leaving 24 boozers at risk.
RedCat pubs have 114 sites across the country in a number of “unique” locations.
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The pub group was founded in 2021 and is headed by former Greene King chief executive Rooney Anand.
The announcement was made this week along with several senior management changes.
It said the decision was made in light of the “significant challenges in the operating environment of the hospitality sector“.
The statement said that the company is taking “proactive steps” and has taken the decision to exit several sites that are underperforming or “do not suit the overall estate”.
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In total 24 sites are at risk, although a list of the ones affected has not yet been released.
Ten sites have been put into administration and a further 14 will be going up for sale over the forthcoming weeks.
Richard Lewis, chief executive officer of RedCat Pub Company said: “I am proud of RedCat and what has been achieved since inception back in 2021.
“It is never easy to say goodbye to some fabulous teams – I am grateful to each one of our employees.
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It comes as many other companies in the hospitality sector are struggling to survive amid the cost of living crisis.
Just last month The Sun revealed that over 7,000 pubs are expected to go bust in the next year.
We visit the ‘poshest’ Wetherspoons in the country
Rising costs and fewer punters through the door has meant that four out of five pubs have seen their profits take a nosedive.
Wetherspoons has already shut more than 40 pubs and punters could be set to lose as many as 19 more.
In September last year the chain – which has 827 pubs across the UK – announced that it was putting dozens of pubs up for sale.
Almost half a dozen pubs remain up for sale, although just this week it announced that two had been saved.
The Rochester Castle in London’s Stoke Newington and the Gate House in Doncaster will now remain part of the hospitality giant’s portfolio.
In 2023 The Sun revealed that more than 500 British pubs closed their doors for the final time.
Last year, 6,000 people were put out of work as a result of boozers having to call time.
Meanwhile, popular bar chain Revolution is reportedly in talks about shutting the doors on around 20 of its worst-performing pubs.
There is said to be a proposal to axe around about a quarter of its venues to keep afloat.
It is unknown how many people could face job cuts, but one insider said it could reach into the hundreds.
Revolution Bars revealed in January it would have to close eight of its boozers, and blamed younger customers spending less than they used to.
It is not just the hospitality sector that is suffering, retail is too, a combination of rising rents and low customer footfall means other big names are struggling to stay afloat.
What is happening in retail?
Many things are happening on the high street right now with other retailers also making changes.
The cost of living crisis and rising bills mean that many big names are struggling to keep the presence they once had in our town centres.
Earlier this month Boots announced that it will be closing a total of nine sites, as part of its wider plans to get rid of 300 locations.
These closures will see the retailer’s total shops reduced from 2,200 to 1,900.
While it may have upset some locales, the health and beauty chain insists that it is only closing stores where there is an alternative shop less than three miles away.
Marks and Spencer is also shutting down some of its locations as part of its five-year plan to shake up its branch portfolio.
M&S, which runs 405 stores across the country, shut down locations in Manchester, Swindon and Birmingham between August and November last year.
However, it also opened up several new locations in November, including Lakeside and the Trafford Centre.
We have the full list of M&S store openings and closures – see if yours is on the list.
However, it is not all bad news for shoppers as despite the difficult trading conditions, some retailers are thriving.
Primark recently confirmed plans to open new branches and invest and renovate more than a dozen of its existing shops.
Just this week we took an exclusive first look at the brand-new store in Stratford before anyone else had a chance to go in.
Also, supermarket giant Asda is massively expanding its portfolio of smaller Express stores, with plans to open 110 new stores.
We have the full list of chains opening stores in 2024 – see if one is coming to a high street near you.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included UK Flooring Direct, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
Last year, around 14% of insolvencies were in retail businesses, according to official figures.
