Friday 18 August 2017

Retailers make up 10pc of failed businesses

Thomas Molloy

Thomas Molloy

Just over one in 10 of companies that collapsed so far this year were retailers, according to new figures from company information group Vision-net.

Vision-net’s figures show that 12pc of all insolvencies so far this year were in the retail sector, compared with 14pc for the same period last year.

“Retailers are reporting that average transaction values are down and our analysis shows that a higher than average proportion of companies in this sector fall into the high-risk category. However, the run-up to Christmas is always the busiest period for retailers so hopefully the high street will show signs of increased consumer demand at this time of year,” said Vision-net boss Christine Cullen.

After the construction, professional services and real estate sectors, retail businesses were most likely to collapse, according to Vision-net’s analysis.

In an analysis of the period between November 1 and 27 this year, Vision-net’s figures show that 140 companies were declared insolvent, or five companies each day, which is down 20pc on the same month last year.

Of those, 103 were liquidated, 34 entered receivership, and an examiner was appointed to three companies.A county-by-county breakdown of the figures for this month shows that Dublin accounted for 43pc of insolvencies, followed by Donegal and Wexford with 10.7pc and 9.3pc, respectively.

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