Quiet time for company failures is giving hope economy may turn
SOMETHING strange is happening in the Irish economy at the moment; we are not seeing the raft of bankruptcies forecast two months ago. As most businesses know, February is a bleak time for companies and their cash flow.
Receivers often move on retailers at this time of year because they will have sold anything that is likely to sell during Christmas and the sales and not yet spent money on buying new stock.
Before Christmas, analysts were confidently predicting that February would be retail Armageddon and forecast that at least one large retail chain would pull out of the country.
While we have seen the appointment of an interim examiner for bathroom and tiles chain BTW, few large companies have actually gone to the wall for some time now -- and this must be a cause for celebration.
It is far too early to say whether this is a trend. The always useful Insolvency Journal reported that there were 1,638 insolvencies last year, compared with 1,525 the previous year.
February was the worst month in both years followed by March and November.
There are another few weeks before we leave the worst time of year for insolvencies but there is undoubtedly room for modest optimism here.