Is Britain's bad weather washing companies into administration?

In business there are some things that are well within your control and, unfortunately, there are some things that are forever destined to be out of your hands. The weather certainly fits into the latter category, and Britain’s businesses have been suffering as a result.

Of course there have been many companies directly affected by the rains, as their premises have been flooded, stock ruined and trade halted. However, there are also numerous examples of businesses that are only now starting to feel the knock-on effects of two months of miserable weather, with administration becoming an increasingly common outcome for many.

One such example is small, lower league football clubs, a spate of which have been adversely affected by the large amounts of over the past two months. The downpours have resulted in waterlogged pitches, in turn leading to matches having to be called off.

For such businesses which run on a shoe-string budget and rely so heavily on one major form of income – in this case the gate receipts from their home games – a run of three or four postponed games, which has been common, can quickly see them sinking into the financial mire. Indeed, we covered one such story earlier this week when Corby Town FC stated that it was on the brink of administration, a situation catalysed by a string of rained-off matches.

Another illustration of the weather’s negative impact on business is the Blackbrook Zoological Park in Winkhill near Leek. The 30-acre zoo, which is home to more than 200 species of bird, is up for sale after it recently entered administration. Again, the tourist attraction cited the rains and floods as critical factors in its decline.

It is an inevitable and long-standing fact that certain businesses will naturally be affected by persistently poor weather; from ice cream vans, through to the travel industry and outdoor attractions, their fates can often lie in the hands of the weather – other than performing rain dances or offering sacrifices to the Roman god Jupiter there is not a great deal they can do.

While it is always imperative that such businesses account for spells of poor weather as best they can, when drizzle turns into hail and floods matters become more difficult. The old adage states that you should “prepare for the worst and hope for the best”; unfortunately Britain’s miserable meteorological start to 2014 has been so bad that even those who diligently prepared are looking bound to suffer.

But for those looking for distressed acquisition opportunities, the trend could prove to be a sign of brighter times to come. The rains may have proved to much for previous owners, but the administrations could provide a boost in the assets and distressed businesses available to savvy buyers.

Share this article

Latest Businesses for Sale

View more businesses for sale