Thursday 27 July 2017

Four firms collapsed every day this year, new figures show

Peter Flanagan

Peter Flanagan

FOUR companies collapsed every day so far this year -- but entrepreneurs registered almost 2,000 new business names in the same period, according to new figures from Vision.net.

Figures show that 121 company insolvencies were recorded between January 1 and January 29 -- down 19pc on same period last year.

Business name registrations numbered 1,973 -- up 12pc on same period last year and averaging 66 new business names every day last month.

Vision.net's figures recorded just over 1,100 start-up companies, which is in line with figures for the same period in the past two years.

Of the 121 companies declared insolvent, 81 were liquidated and the remainder entered receivership.

Of the 12,985 Irish companies Vision.net stress-tested last month, 55pc showed signs of business failure.

Risk

In the hospitality sector, three-fifths of companies were deemed high risk while, in construction, 53pc of firms were in danger of collapse.

About one in three companies in the healthcare and agricultural sectors are considered high risk, according to Vision.net's figures.

Christine Cullen, managing director of Vision.net, said the figures show that, although the domestic economy remains weak, entrepreneurs are still determined to start their own businesses.

"Our figures show that company insolvencies remain a daily feature of the domestic economy but the spike in business name registrations and a consistent trend in the number of start-ups demonstrates our resilient sense of entrepreneurship," said Ms Cullen.

Last month, 165 registered commercial and consumer judgments amounting to €10 million were recorded in the courts.

Ms Cullen also called on the Government to fast- track planned bankruptcy legislation -- which will allow the publication of individuals' debt histories, in a move aimed at tackling Ireland's growing personal insolvency crisis.

Irish Independent

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