Corporate insolvencies rise in first three months of 2015
The number of insolvencies here rose in the first three months of the year compared to the end of 2014.
Corporate insolvencies in the first quarter of the year totalled 250, representing a 17pc decrease on the same period in 2014, according to the data released by Deloitte.
But there was also a 13pc increase in insolvencies when compared to the final quarter of last year.Receiverships accounted for 55, 22pc, of the total corporate insolvencies in the first three months of the year, the same number as was recorded in the final quarter of 2014.
But this was down from the 189 in the same period last year.
David Van Dessel, partner at Deloitte, said that of the number of insolvencies, few have been put in examinership.
"Take-up is consistent with the comparable periods and shows that the introduction of new legislation in early 2014 has not had the anticipated effect of encouraging more struggling SMEs to avail of this more cost-effective and accessible option," Mr Van Dessel said.
"As we continue into 2015 it will be interesting to observe whether or not the low levels of take-up thus far are simply a delayed response to the new legislation, or if the low levels are indicative of the need for further education on the benefits of this option for smaller companies."
Geographically, the highest number of corporate insolvencies in the period was recorded in Leinster with over 60pc of the total appointments. Munster had 24pc of appointments, Connaught 11pc and Ulster just 4pc, again consistent with the same period last year.
The construction industry had the highest proportion of insolvencies at 191. The service industry recorded the second highest levels in the same periods Proportionally, the largest movement was seen in the motor industry where the number of corporate insolvencies fell by 54pc over the 12 months.