Number of corporate insolvencies fell 10pc last year
Published 08/01/2016 | 02:30
The number of corporate insolvencies in Ireland fell 10pc last year to 1,049 as the economy continues to recover.
Figures from Deloitte and insolvencyjournal.ie show that 69pc, or 729 of the insolvencies in 2015 were voluntary liquidations. The percentage is consistent with that recorded in 2014.
The service sector notched up the most corporate insolvencies in 2015, with 200, or 19pc of the total. That was closely followed by the retail industry at 154, or 15pc of the total. The construction industry recorded, 13pc, or 139 of the corporate insolvencies and the hospitality industry recorded 109.
In 2014, the construction sector had accounted for the highest percentage of insolvencies.
Receiverships accounted for 251, or 24pc of corporate insolvencies last year, down by 50 from 2014. There were 50 court liquidator appointments in 2015, compared to 68 the previous year.
But David Van Dessel, a partner in Deloitte Restructuring Services, said that while it was encouraging to see the overall number of insolvencies fall, it was disappointing that levels of examinership remain at "very low levels" compared to international peers. He said that a "real effort" needs to be made to educate SMEs on the option.
In 2015, only 19 examiners were appointed, representing just 2pc of all insolvencies in the year. The percentage is consistent with prior years. Mr Van Dessel said he expects the number of corporate insolvencies to continue to fall this year.
"It is expected that there will finally be an increase in the number of companies opting to restructure by way of examinership, particularly as the general improvement in the domestic economy should mean that more businesses will have a reasonable prospect of survival," he added. "By corollary, the anticipated increase in restructuring should lead to a corresponding decrease in the number of creditors' voluntary liquidations."