The New World Trading Company, operator of popular bar chains like the Botanist, the Oast House, and the Trading House, is grappling with financial difficulties, leading to the closure of several locations in recent months. In a continuation of a restructuring process initiated in late 2024, the company shuttered three more bars in early 2025, including two Botanist locations and a North Light bar. This follows the closure of three other sites in late 2024, bringing the total number of closures to six in a short timeframe. The company attributed these closures to the ongoing unprofitability of the affected sites, a consequence of broader challenges facing the hospitality sector.
The New World Trading Company’s struggles reflect a wider trend of closures and restructuring within the hospitality industry. The company entered into a Company Voluntary Arrangement (CVA) in late 2024, a measure designed to allow the business to continue operating while simultaneously addressing financial difficulties. This often involves closing underperforming locations and negotiating rent reductions with landlords. The CVA followed a period of significant financial strain for the company, brought on by the lasting impacts of the COVID-19 pandemic, coupled with rising inflation and a cost-of-living crisis that has squeezed consumer spending. While closing some locations, the company has also rebranded others and plans to open a new Botanist site in Bournemouth in May 2025, demonstrating a continued commitment to its core brand.
The company’s financial reports paint a stark picture of the challenges it faces. According to its latest published accounts, the New World Trading Company reported a pre-tax loss of £4.9 million for the year ending March 31, 2023. This substantial loss underscores the severity of the financial pressures bearing down on the company and highlights the difficult decisions it has been forced to make regarding site closures. The company isn’t alone in its struggles, as other bar groups are also experiencing similar challenges. BrewDog, another prominent bar chain, announced the closure of six bars in early 2025, including locations in Europe, China, and England. Stonegate, another major player in the hospitality sector, also confirmed the closure of The Bedford in Southampton. These closures across multiple brands highlight the systemic difficulties facing the industry.
The broader hospitality sector is experiencing a period of significant upheaval, driven by a combination of factors. The cost-of-living crisis has significantly impacted consumer spending, leading to fewer people eating and drinking out. This reduced demand has made it challenging for businesses to recover from the financial setbacks experienced during the pandemic, particularly with the added burden of soaring energy bills and persistent inflation. The combination of these factors has created a perfect storm for the hospitality industry, forcing many businesses to make difficult decisions regarding closures and restructuring.
The impact of these economic pressures is evident in the struggles of numerous well-known food and drink chains. Established brands such as Wetherspoons and Frankie & Benny’s have closed branches in response to declining profitability. Some chains, like Byron Burger, have been unable to weather the storm and have fallen into administration, resulting in job losses. Pizza giant Papa Johns also announced the closure of 43 stores, and Tasty, the owner of Wildwood, has shut down locations as part of its restructuring efforts. These closures demonstrate the widespread nature of the challenges facing the hospitality sector, impacting businesses of all sizes and specialties.
The retail sector, closely linked to hospitality in terms of consumer spending and economic pressures, is also facing significant challenges. The pandemic accelerated the shift towards online shopping, impacting foot traffic and profitability for brick-and-mortar stores. The combined pressures of high energy costs, reduced consumer spending due to the cost-of-living crisis, and increasing operating costs, including rising National Insurance Contributions and minimum wage increases, have created a difficult environment for retailers. The Centre for Retail Research (CRR) predicts a substantial number of retail site closures in 2025, following a significant number of closures in 2024. This bleak outlook for the retail sector underscores the wider economic challenges facing businesses dependent on consumer spending and highlights the interconnectedness of the retail and hospitality sectors. The CRR also forecasts significant job losses within the retail sector, reflecting the depth of the challenges facing this industry and the broader economic landscape.
