Drop in number of retailers going broke as sales rise
FEWER retailers are going broke than previously, according to new figures from company credit risk group Vision.net.
Around 12pc of all insolvencies seen so far this year were in the retail sector, compared with 14pc for the same period last year, Vision.net said.
The new figures chime with the latest retail sales figures published earlier this week, which showed a rise in sales of books, newspapers, fuel and electronics.
Buying was also brisk in supermarkets and department stores.
Sales have shown signs of stabilisation for several months after years of decline.
Companies in the professional services, construction, wholesale and retail, real estate, social and personal services, and manufacturing sectors made up 71pc of closures this year so far.
Still, Vision.net's figures show that retailers are most likely to go to the wall after companies in the construction, professional services and real estate sectors.
An analysis of the period between November 1 and 27 this year shows 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.
Vision-net's figures show that 113 companies held meetings of creditors this month – six meetings fewer than last November – and the total amount owed is In the first 10 months of the year, 11,659 companies were formed but 11,440 collapsed, showing a net gain of 219.
Overall, the economy has been creating marginally more businesses than it is shedding, and the downward trend in the number of insolvencies this month compared to last November is encouraging,2 said Vision.net boss Christine Cullen.