In business, every set of accounts tells a story.
Sometimes it’s one of steady growth and smart planning. Other times, it’s a warning about challenges just around the corner.
Recently, a well-known Newcastle city-centre venue, The Earl of Pitt Street, closed its doors after more than ten years of trading. For many locals it was more than a pub – it was a familiar meeting place, known for its food, atmosphere and independent spirit.
But behind that familiar front, the business faced difficulties that became impossible to overcome.
What Happened
According to public reports, the venue “never really recovered” from the COVID-19 lockdowns. The hospitality sector as a whole was hit by prolonged closures, changes in customer behaviour and increased operating costs.
Worsening those challenges, the business had partly based its growth expectations on a planned residential housing development of over 240 new homes on land directly opposite the venue in Newcastle, which never materialised. The failure of this development to proceed meant the boost in footfall and local demand the business had anticipated did not arrive. (Source: Newcastle World)
While we could not locate a publicly-documented planning application specifically stating “240 homes opposite Pitt Street”, we do know that within the City of Newcastle upon Tyne there are number of sites allocated or identified in the Local Plan to support future housing growth, and that the Council monitors under-delivery of such sites when expected housing is not built. Newcastle City Council+2Newcastle City Council+2
For example, the City’s Development & Allocations Plan 2015-2030 sets out housing allocations and identifies sites, policies and expectations for delivering new homes in the city. Newcastle City Council
When land allocated for housing does not progress, the reasons can include infrastructure constraints, changes in developer appetite, cost inflation, planning policy delays or market conditions. For example, a report on housing development noted:
“The houses aren’t being built because the developers are profiting from the fact that they receive an outline, or full, planning permission and the land value is greatly increased from that point on. But mainly … the developers just want the land as they have no intention of building homes as the infrastructure is not sufficient to make the houses appealing, or profitable, as they would need to develop any such infrastructure accordingly.” audleyplan.org
So in the case of the pub, if a neighbouring development was delayed or cancelled, the expected local growth in customers may never have arrived — leaving the business with less trade than projected and higher risk.
Eventually, financial pressures mounted. Rising debt, reduced revenue and a tough economic climate left little room for recovery.
What Could Have Gone Better
At Friendly Assist Accountancy, we often reflect on stories like this — not to criticise, but to understand what lessons can help other business owners stay ahead of trouble. Here’s what an early advisory accountant could have done:
1. Cash-Flow Forecasting
A detailed cash-flow forecast might have shown how long the business could survive on reduced income, highlighting when trouble was coming and giving time to respond.
2. Scenario Planning
One key assumption – that the new housing opposite would drive extra customers – turned out not to hold. An accountant could have built “what-if” models: what if the development was delayed? Reduced? Cancelled? That kind of modelling helps board/owners see how business strategy might need to pivot.
3. Debt & Financial Health Monitoring
If the business is carrying increasing debt, an accountant can track ratios, review debt servicing capacity, working capital turnover and warn when thresholds are being breached, rather than waiting for year-end.
4. Use of Reliefs, Grants & Tax Advice
In post-COVID hospitality many reliefs, grants and tax deferrals were available. A proactive advisor would ensure that all relevant reliefs (e.g., temporary business rates relief, VAT deferral, staff support schemes) were claimed on time. Delaying this diminishes flexibility when income drops.
5. Strategic Advisory Role
Beyond just compliance (tax returns, accounts, payroll), today’s business demands advisory support: helping the business review diversification, build in contingency, adapt the business model (for example, pivoting to delivery, events, online, or partnerships) when the assumed external boost (housing development) failed to arrive.
Turning Lessons into Action
The closure of The Earl of Pitt Street is a reminder that financial insight isn’t just about compliance. It’s about planning ahead, protecting what you’ve built, and being ready to pivot when things change.
At Friendly Assist Accountancy, we believe in being more than bookkeepers. We’re partners in planning – here to help businesses see beyond the numbers and make decisions with confidence.
If your business is facing uncertainty, let’s talk. Together, we can make sure your financial story has a stronger next chapter.
Friendly Assist Accountancy
Helping businesses plan, grow, and stay resilient.
See further:
Newcastle World. (2024). Popular Newcastle restaurant and bar announces closure after ten years. Retrieved from https://www.newcastleworld.com/lifestyle/food-and-drink/popular-newcastle-restaurant-and-bar-announces-closure-after-ten-years-5060060
Magzter / The Chronicle. (2024). Gastropub shut with £1.4m debts. Retrieved from https://www.magzter.com/fr/stories/newspaper/The-Chronicle/GASTROPUB-SHUT-WITH-14M-DEBTS
Newcastle City Council. (2023). Newcastle Development and Allocations Plan 2015–2030. Retrieved from https://www.newcastle.gov.uk/newcastleplan
Audley Neighbourhood Plan. (2024). Consultation Statement (June 2024). Retrieved from https://audleyplan.org/assets/pdf/ARNP_Consult_Stat_June_2024.pdf
Newcastle World. (2024). Council promises to help Newcastle bars and restaurants after spate of city centre closures. Retrieved from https://www.newcastleworld.com/lifestyle/food-and-drink/council-promises-to-help-newcastle-bars-and-restaurants-after-spate-of-city-centre-closures-5095808
CAMRA (Campaign for Real Ale). (2024). The Earl of Pitt Street (Pub record – status: Closed long term). Retrieved from https://camra.org.uk/pubs/earl-of-pitt-street-newcastle-upon-tyne-193749