Insolvent firms' total tipped to top 1,400 for the year
Wednesday December 02 2009
THE volume of insolvencies recorded in 2009 is now expected to top industry predictions of 1,400 after another 117 companies ran into trouble in November. Last month's body count brings to 1,326 the number of companies that have been declared insolvent so far in 2009, new statistics from Kavanagh Fennell's insolvencyjournal.ie showed yesterday.
"The average rate of monthly insolvencies now stands at 122 companies," Kavanagh Fennell's Ken Fennell said yesterday. "Should this continue (in December), the total number of insolvencies will exceed our own predicted figure of 1,400 insolvencies this year."
The 1,400-plus figure compares with less than 800 companies that collapsed in 2008.
Yesterday's figures show construction continues to be the hardest hit, with another 31 companies going to the wall in November which brings the sector's 2009 total to 394.
The service sector also had a bruising year, with 25 insolvencies in November and 253 across 2009; as has retail, with 205 insolvencies in the first 11 months; and hospitality, with 155 company failures over the same period. The motor trade is also witnessing a sharp increase in insolvencies, posting six in November against one a month earlier.
Creditors' Voluntary Liquidation continues to be the most common resort used by insolvent companies, with just two applying for examinership in November and just 12 falling into the hands of receivers.
- Laura Noonan
Irish Independent
