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With Christmas fast approaching, operators are banking on a bumper festive trading season. Whilst like for like sales, for many, continue to outpace both 2021 and 2019, cost pressures are eroding margins, with many operators struggling to absorb these. Headline inflation in October 2022 was 11.1%, but this only paints part of the picture for the leisure sector. For many, utility bills have increased by 200-300%, Carbon Dioxide, used so widely in the brewing and food industry has seen a 3,000% increase and staff and raw material costs have increased exponentially.
Specialising in the leisure sector, Fleurets witness first-hand the pressures both operators are facing and the concerns from landlords and funders about the viability of their tenants/borrowers. More so than ever, over recent months we have been instructed to advise on exit strategies, landlord negotiations and funding positions. That said, the market remains active, especially for prime sites and those offering alternative use options. There are a number of well-funded purchasers analysing the market and identifying target opportunities as we head towards 2023.
Through our work with restructuring experts, banks and funders, it is evident that the distress in the market place is accelerating and stakeholders are reviewing their options, as economic pressures exacerbate. With our sector expertise and national presence, we are experienced in all forms of leisure property, to advise on property strategy, maximising value for parties and concluding swift transactions, through our extensive database of buyers and marketing reach.
We would welcome the opportunity to discuss the current market further with you and to advise on any cases that you require expert property advice on. The following pages provide further insight into our work and how we are well
placed to assist you.