Business failures up quarter on May 2011
The number of business failures in Ireland last month jumped 27pc compared to May 2011, with 740 firms having collapsed so far this year, according to new data.
Statistics from Insolvencyjournal.ie show that there were 155 corporate insolvencies last month, with the year-to-date figure now 8pc higher than the comparable period in 2011.
The construction industry remains the hardest hit. It accounted for 23pc of all corporate insolvencies last month, as capital investment all but dries up and the housebuilding market effectively remains non-existent.
The retail trade has also been suffering heavily as consumers refuse to splash out over continuing concerns on job security. The sector accounted for 19pc of all corporate insolvencies in May. "Shops, pubs and hotels are particularly susceptible to failure as consumers remain cautious on spending," said Ken Fennell, a partner at Kavanagh Fennell, which prepares the statistics.
He added that the failure of the Government to address upward-only rent reviews on existing leases has made survival for retailers "more difficult".
The services industry accounted for 15pc of insolvencies in May.
Mr Fennell said that high level of company failures last month demonstrates that there is "little sign of immediate change" in the current economic environment. He added that the number of insolvencies recorded last month was the second highest monthly figure so far this year after February.
The data also shows there were 35pc more voluntary liquidations last month compared to May 2011, and that the figure was up 6pc month-on-month.