McDermott Comment | Restaurants To Serve Up Surge In Bankruptcies As Support Runs Out

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Aymen Mahmoud, partner at law firm McDermott Will & Emery, said:

“It is no secret that the hospitality industry was one of many affected by the impact of the pandemic and even by Brexit prior to that with many restauranteurs publicly exclaiming difficulty in finding staff. Whilst we can be sure to expect some insolvencies and some businesses will not survive, a significant opportunity may exist for others. For smaller businesses, owners continue to show massive industry and thoughtfulness in how they have approached existing investors, with valuation discounts, tax structuring incentives such as EIS and careful business planning. For the larger restaurants, there may also be some excellent M&A opportunities for some of the more traditional private equity and other investors where business values are reduced and the return to profitability is quicker than first thought.”