Guides & Advice

Marston’s job cuts: last orders for hospitality?

Published: 22nd October 2020
Area: Litigation & Dispute Resolution

Marston’s announcement that it is set to cut up to 2,150 jobs has shown that even industry giants aren’t safe from the new Government restrictions.

Coping with restrictions

With the 10pm curfew already having impacted the profits of many businesses in hospitality, the new tier system was always going to hit the sector hard, causing a host of new limitations for pubs, bars and restaurants to contend with.

Confusion caused by this system will likely only exacerbate hardships faced by hospitality venues, with the uncertainty surrounding when things will return to normal making it a challenge to plan for the months ahead.

Will localised support bring some relief?

Although the new localised furlough scheme provides some relief for hospitality and leisure businesses that are forced to close, job cuts are still being made, showing just how close to the edge many pubs, bars and restaurants are.

For those which are able to stay open, and teetering on the brink, redundancies may be the only way forward if they are to survive, with some in hospitality stating they’d be better off if they were made to close temporarily, allowing them to take advantage of the job retention scheme.

How can the hospitality move forward during COVID-19?

The constant balancing act that the sector has had to battle in recent months has drained many businesses, and sector leaders are likely to try and challenge these increased restrictions. However, in the meantime, they should review their business models, assessing what changes can be made and what help is available.

By making the most of Government support and seeking professional guidance regarding the best steps to take next, these latest restrictions don’t have to mean certain death for hospitality.

We’re here to help

If you’re experiencing financial difficulties and would like some advice and support, then speak to a member of our corporate insolvency and restructuring team.

Our guide to recovery and resilience, helps to support businesses and individuals unlock their potential, navigate their way out of lockdown and make way for a brighter future. Further advice in relation to COVID-19 can be found on our dedicated coronavirus resource hub.

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