Number of failing companies will hit 1,400 by year end
ALMOST 1,100 companies plunged into insolvency in the first nine months of the year, putting the economy on course for 1,400 company collapses in the full-year.
Liquidator Kavanagh Fennell made the grim prediction yesterday as it published the latest statistics from its dedicated insolvency website insolvencyjournal.ie.
The figures compare with 2008's full-year insolvency toll of less than 800, and 2008's nine-month total of 480.
The latest data shows a marginal improvement in insolvencies between August and September, with just 109 insolvencies last month, compared to 132 the month before.
Trend
The trend is in marked contrast to the established pattern of quiet Augusts, but Kavanagh Fennell said it was "too early to predict" whether the declining trend would persist.
A more detailed breakdown of the figures shows construction continues to lead the insolvency leagues with 324 entries, followed by retail, with 165, hospitality with 129 and manufacturing with 90.
Creditors' voluntary liquidations, where insolvent companies voluntarily opt for wind-down, account for the overwhelming majority of the cases, followed by receiverships, where secured creditors step.
Examinership, where companies get court protection for a limited period so they can restructure their finances, has been linked to high-profile insolvencies like Liam Carroll's Zoe Group but remains the least commonly used option.
In response to the rising tide of insolvencies, Kavanagh Fennell and Chartered Accountants Ireland have just launched a new publication, 'A Practical Guide to Insolvency' to educate directors and managers on the options open to them.
- Laura Noonan
Irish Independent
