Sign of more closures to come, as Hartlepool's small businesses struggle to weather the cost of living crisis.
Mon 2nd Jan 2023 07:31am
Two Hartlepool social clubs have closed their doors within weeks of each other, as signs the cost of living crisis is causing some firms to buckle under the strain of increasing energy costs, dwindling footfall & wholesale costs of stock leading to some businesses looking at huge losses being incurred if they decided to continue to trade...
It comes as both the United Services Social Club in the towns Miers Avenue & the NALGO Social club in Hartlepool's Westbourne road announced their closures within weeks of each other, sparking claims a number of struggling pubs & clubs could go down the same route unless further financial support from the government is offered to struggling firms.
The United Services Social Club in Miers Avenue announced its snap closure just weeks ago, following claims dwindling customer numbers & memberships had led to the club no longer being profitable.
At a members extraordinary meeting held recently, its claimed a decision to close the social club permanently was undertaken as no viable options could be found to save the business which had seen membership numbers plummet over a number of years...
Two years prior, the club was forced to call a meeting with members following concerns by accountants that the club was facing almost "impossible trading conditions" as profits slumped due to dwindling memberships.
Its claimed all members of staff were subsequently made redundant when administrators were recently appointed to wind up the struggling social club, with the future of the building that was the once popular social club looking "unclear"....
However, just days ago , Hartlepool's NALGO social club in the towns Westbourne Road also announced its snap closure due to "unforeseen circumstances", with members said to have been invited to an extraordinary meeting where its been claimed members of the club are set to be told that the financial position of the business due to the current economic crisis has led to the club being unsustainable to run in the current economic climate.
It signals a rather dismal start for the new year for many Hartlepool businesses who fear the number of firms closing their doors will only increase, as customers choose to stay at home as the cost of living crisis eats away at residents disposable incomes.
Its expected to be in April 2023, where its likely some local businesses will end up calling it a day, as rising prices see some companies left unable to make any significant profit forcing some firms to effectively "call time", with pubs most at risk from closure with many still recovering from the COVID-19 pandemic, which decimated the profits of many firms.
Government figures reveal business insolvency has risen 40% compared to the same time last year
Government insolvency figures reveal that the number of firms going bust nationally has risen 40% from the year previous, with energy costs said to be the main factor for many firms having to close their doors as some businesses see their energy prices skyrocket, with increasing calls for the government to provide further financial assistance to struggling firms where its claimed many firms may only be able to make it until April, before the country sees a deluge of businesses shutting shop, as the overall running costs erode ever single penny of profits some businesses were able to make.
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