Insolvencies fall in first six weeks of the year
Published 11/02/2015 | 02:30
The number of companies becoming insolvent has plunged by a third over the past year, in the latest sign a economic recovery is taking hold.
There were 87 insolvencies recorded between the start of this year and February 10, down 33pc on the same time in 2014, according to new figures from business and credit risk analyst Vision-net.ie.
The list includes IBRC Mortgage Bank, mining company Albativ Resources and financial company Seedcorn Management Holdings. Two-thirds (57) of the insolvent companies had a liquidator appointed or were ordered to wind up by the High Court, while 29 had a receiver appointed and one had an examiner appointed.
In January, insolvencies were down 38pc on the year before.
Vision-net managing director Christine Cullen said the numbers were encouraging but cautioned that insolvencies are only a small snapshot of the overall picture.
"Insolvencies are not the only mechanism through which companies close. An awful lot of businesses in Ireland are not limited companies but they are business names and sole traders, and it'd be very unlikely for entities such as that to go through the insolvency process," Ms Cullen said.
She said that in 2014 almost 12,000 companies closed their doors for reasons ranging from completing the purpose they were set up for, to lack of business. About 1,500 of the closures were insolvencies, while 300 new companies were set up.