Home / Safeguarding Manchester’s hospitality businesses: why seeking early legal advice matters
7th October 2025
Francesca Geddes, Solicitor
Manchester’s hospitality sector is traditionally the cornerstone of the city’s vibrant economy, attracting visitors from across the UK and beyond. However, in recent years, the industry has faced significant challenges, including changing consumer habits, rising costs, and the lingering impacts of the pandemic. Although hospitality owners have been incredibly resilient, recent statistics published by CGA highlight that just 22% of independent operators feel optimistic about their prospects for the next 12 months and that leaders’ confidence remains at a historically low level.
In this article, we examine the current market outlook for hospitality in Manchester and explore how seeking early advice from a business restructuring solicitor can make a critical difference for businesses under financial strain.
Manchester’s hospitality landscape is renowned for its diversity, from bustling city-centre hotels to independent restaurants and lively bars. Despite strong demand, the sector has shown signs of strain in 2024 and 2025. Rising energy costs, increased national insurance costs, and supply chain pressures have reduced profit margins, leaving many businesses in a precarious position. Consumer spending has also become more cautious amid wider economic uncertainty, impacting revenues across the sector.
Nonetheless, Manchester’s reputation as a destination for events, sports, and culture continues to offer opportunities for growth. Venues that adapt to changing trends—such as embracing sustainability, offering unique experiences, and leveraging technology—are better positioned to weather market pressures. However, for those already facing cash flow issues, the path forward may not be clear.
Often businesses wait until their financial difficulties reach crisis point before seeking help. By that stage, insolvency may be unavoidable, carrying with it severe consequences for owners, employees, and creditors. Insolvency can result in the forced sale of assets, loss of control over business decisions, reputational damage, and, in some cases, personal liability for directors.
Engaging a business restructuring solicitor at the first sign of financial distress can make a decisive difference. Kuits’ legal professionals specialise in supporting businesses to assess their situation, explore alternatives to insolvency, and implement turnaround strategies. Early intervention opens up a wider range of options, including:
Negotiating with creditors: A solicitor can help restructure debt, agree new payment terms, or seek a Company Voluntary Arrangement (CVA) to give breathing space.
Operational restructuring: Legal advice can support changes to the business structure, renegotiation of contracts, or downsizing to return to profitability.
Access to government schemes: Solicitors can advise on eligibility for support schemes or grants that may ease short-term pressures.
Protecting personal interests: Early legal input can help directors avoid actions that might create personal liability should insolvency become unavoidable.
Proactive contact with a restructuring solicitor is not an admission of failure but a strategic move to safeguard your business and its stakeholders. Early advice increases the likelihood of turnaround, preserves value, and often results in more positive outcomes for employees, creditors, and owners alike. It also provides peace of mind, knowing you are acting within the law and maximising your options.
Manchester’s hospitality sector remains dynamic but faces ongoing challenges. For business owners, the key message is clear: do not wait until financial problems escalate. Engaging a business restructuring solicitor at the earliest opportunity can be the difference between a successful turnaround and insolvency. Acting early demonstrates prudent leadership and may secure the future of your business in Manchester’s competitive hospitality market.