Accommodation and food services: company insolvencies in Australia

In Accommodation and food services, 2,078 companies entered external administration in 2025-26, 14.7% of the year's total.

That was down 16.1% on 2024-25.

Source: ASIC, Australian insolvency statistics, Series 1, retrieved 26 Oct 2026. Grouped by industry and summarised by onestepright. No company is named. Series 1 to 4 Oct 2026, released 19 Oct 2026. Series 3.1 to 2024-25. Both change as ASIC publishes.

ASIC's statistics are not exhaustive. They are based on the information available to ASIC at the time of publication.

In 2024-25, administrators' reports in Accommodation and food services most often named inadequate cash flow or high cash use (60.9%) and trading losses (60.2%).

Causes named in Accommodation and food services, share of reports, 2024-25More than one cause may be named in a report, so the shares add to more than 100%.
  • Inadequate cash flow or high cash use: 60.9%
  • Trading losses: 60.2%
  • Poor strategic management of business: 46.2%
  • Poor economic conditions: 39.9%
  • Other: 34.1%
  • Poor financial control including lack of records: 31.8%
  • Under capitalisation: 29.3%
  • Poor management of accounts receivable: 3.8%
  • Dispute among directors: 1.8%
  • Natural disaster: 1.8%
  • Business restructuring: 1.1%
  • Fraud: 0.6%
  • Industry restructuring: 0.2%
  • DOCA failed: 0.0%

Source: ASIC, Australian insolvency statistics, Series 3.1, retrieved 26 Oct 2026. Grouped by industry and summarised by onestepright. No company is named. Series 1 to 4 Oct 2026, released 19 Oct 2026. Series 3.1 to 2024-25. Both change as ASIC publishes.

See business exits in Accommodation and food services, every business that stopped trading, from ABS data.

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ASIC does not operate, sponsor or endorse this site, and did not write this page. The grouping and the summaries are onestepright's.

Read ASIC's insolvency statistics (opens in a new window) in full.