Drop in number of failed businesses sparks new hope
The number of companies going bust in Ireland is falling and may signal that business failures might have peaked.
New figures from insolvencyjournal.ie show that 68 receivers were appointed to Irish companies between July and September which was down 8pc, and which included a receiver being appointed to Superquinn.
The number of building firms going out of business dropped by 12pc, with 101 insolvencies in the third quarter of this year compared with 115 in the same period last year. The number of companies going into examinership also remained very low.
Ken Fennell, a receiver at Kavanagh Fennell, said that while the reduction in the number of companies becoming insolvent was small, it could be a sign that the number of firms going out of business in Ireland was beginning to stabilise.
So far this year, 1,208 companies have gone out of business, which is slightly higher than in the same period last year.
Most of these businesses were in the retail sector.
"While our prediction for the year remains at 1,600 insolvencies, we are seeing positive signs that the number of corporate failures may have peaked," said Mr Fennell.