Debt of the HoReCa industry is growing. Business is struggling to stay solvent.

As a result of the prolonged pandemic, more and more companies are balancing on the brink of liquidity. The crisis has hit the HoReCa industry, among others, particularly hard, which has been steadily increasing its debts in recent months. According to experts, in order to prevent bankruptcy, companies at risk of insolvency should not delay implementing recovery tools.

HoReCa needs help 'now'
The partial freezing of the economy resulted in huge losses in the HoReCa industry. According to data National Register The debt arrears of hotels, restaurants and catering companies in October this year amounted to almost PLN 281 million, which is PLN 68 million more than before the pandemic, in February this year. The debt was spread over more than 10 thousand entities, with the biggest problems were reported by companies from Mazovia, where total arrears reached PLN 57.2 million. The next places were taken by Silesia and Lower Silesia, where companies from HoReCa industry owed their contractors one by one PLN 37.1 million and PLN 27 million.

The latest BIG InfoMonitor data indicate that the hotel sector's arrears at the end of Q3 this year amounted to PLN 955 million, making it the most indebted sector of the economy. The second place in the ranking went to "restaurants and other stationary catering facilities", which increased their arrears from PLN 535 to PLN 570 million in Q2 and Q3 this year. Representatives of the HoReCa industry also do not see much hope for a quick improvement in the situation. According to research by the European Leasing Fund, published at the beginning of November this year, as much as 51 percent. hotels, restaurants and catering companies expected a decline in orders in their premises in the last three months of this year, while 40% companies from this sector expected a deterioration in their financial situation.

Małgorzata Anisimowicz – qualified restructuring advisor and president PMR Restructuring Management Board provided a commentary on a publication on the website horecanet.pl devoted to socio-economic issues.

The article appeared on horecanet.co.uk:5 January 2021. We invite you to read the full version:Debt of the HoReCa industry is growing. Business is struggling to stay solvent.

PMR team

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