Three firms went bust every day in May
Published 02/06/2010 | 11:40
Figures released today show the rate of insolvencies has fallen for the third month in a row but the number of businesses shutting their doors for good was more than 25pc higher this year than the same period in 2009.
Dublin was the worst place for struggling for trade, with the capital accounting for 40pc of all failures.
InsolvencyJournal.ie said 112 firms went bust in May, down from the year-high of 151 in February.
Ken Fennell, partner with Kavanagh Fennell, the largest specialist insolvency practice in Ireland, said it was too early to say insolvencies had bottomed out.
"The latest figures appear to signal that insolvencies may have bottomed out," he said.
"Insolvencies have dropped from five a day in February to just over three a day in May but at this stage it is too early to tell whether the decline in failures indicates an improvement in the economy or just another seasonal dip in figures."
There have been 652 insolvencies this year compared to 512 last year and 263 in Dublin.
Mr Fennell said: "The inclusion of the first tranche of loans into bad-bank Nama could have been a factor in the low levels of insolvencies recorded in the construction industry this month.
"It will be interesting to see the levels of construction in the coming months and if the sector has finally bottomed out."
The sectors worst affected were construction (28 last month and 194 so far this year); hospitality (17 in May with 83 since the New Year); manufacturing (14 last month and 51 for the year); and motor and transport (10 in May with 32 for the year).
The report warned that high rents continue to cause problems for retailers while the car scrappage scheme was helping to sustain the motor industry.