{
  "id": 4688808,
  "title": "Last call: 3000 hospitality businesses gone in a year as business feels the crunch",
  "url": "https://urgent.news/2026/08/31/last-call-3000-hospitality-businesses-gone-in-a-year-as-business",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-31T18:18:07.000Z",
  "source": {
    "name": "RNZ Business",
    "slug": "rnz-business",
    "url": "https://www.rnz.co.nz/news/business/1202454/last-call-3000-hospitality-businesses-gone-in-a-year-as-business-feels-the-crunch"
  },
  "original_language": "en",
  "account": "In the past 12 months, approximately 3000 hospitality businesses have closed their doors, according to new data from credit bureau Centrix. While business defaults have decreased, company closures and liquidations have risen significantly. Within the hospitality sector alone, 422 companies, or 1.3% of the industry, entered liquidation annually—a 42% increase compared to the previous year. Restaurant liquidations surged by 43%, takeaway food service liquidations rose by 143%, and cafe liquidations grew by 27%. Altogether, 2900 hospitality businesses ceased trading, a 40% year-on-year increase. Retail trade liquidations saw a 50% rise year-on-year. In July, 302 company insolvencies were reported, compared to 276 a year prior. Construction accounted for 28% of these liquidations, property leasing and hiring for 13%, and hospitality for 11%. Centrix reported that the hospitality sector's insolvency rate was 3.3 times higher than that of the average New Zealand business. Centrix's chief operating officer, Monika Lacey, attributed the slowdown to reduced consumer spending and the challenging economic cycle. Restaurant Association general manager, Nicola Waldren, emphasized that the 1.3% liquidation rate, while seemingly small, represents a significant impact on individual owners, employees, and the broader community. Many businesses have been working to rebuild their balance sheets and pay down debt accumulated during the Covid-19 pandemic while contending with rising costs and constrained consumer spending. Westpac chief economist, Kelly Eckhold, suggested that the sector might start recovering when unemployment starts to decline. Insolvency practitioner Keaton Pronk noted that winter often presents the slowest period for the hospitality sector, exacerbated by tough economic conditions prompting consumers to cut their spending. The Reserve Bank's monetary policy, including interest rates, remains a critical factor influencing businesses' cash flow and ability to meet their financial obligations.",
  "summary": "Hospitality's insolvency rate is 3.3 times that of the average New Zealand business.",
  "key_points": [
    "3000 hospitality businesses closed in past year, 40% increase",
    "Restaurant liquidations rose 43%, takeaway food service up 143%",
    "Hospitality sector's insolvency rate 3.3 times higher than average"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}