Poor cash flow is often the primary cause of insolvency in companies; therefore, the fact that higher spending and lower turnover exist in the industry puts many pub businesses at jeopardy, potentially leading the company name to appear in the gazette if liquidation ensues.

Sometimes a business is simply not feasible for the future, and the only option is to close. When a pub experiences insolvency but the business remains sustainable, restructuring debts through a Company Voluntary Arrangement (CVA) or getting flexible financing can help it endure, avoiding the need for the liquidation process.

UK provides a variety of supportive measures for insolvent pub businesses to ensure that business owners comply with insolvency regulations and do not unintentionally violate the strict regulatory requirements.

It is critical to seek professional aid from licensed insolvency practitioners at the first hint of financial problems, as this opens up more opportunities for recovery and avoids the necessity of compulsory liquidation.