More retailers go broke as insolvencies rise by 10pc
The number of corporate insolvencies rose by 10pc in the three months to the end of June with figures in the retail industry seeing a notable jump, according to a new survey.
There were 275 corporate insolvencies in the second quarter of 2015, according to statistics from Deloitte. This marked a sharp drop from the same period last year, when 347 companies went bust.
However, the number of insolvencies represented a 10pc increase on the first quarter of the year, when 250 companies went insolvent.
The highest level of corporate insolvencies were recorded in the retail sector which accounts for 16pc (44) of the total. This represented a 52pc increase on the previous quarter, the largest movement over all the industries analysed.
David Van Dessel, of Deloitte's restructuring services division, said: "The statistics indicate that trading conditions remain extremely difficult for retailers.
"While some consumers feel they may have more to spend, the upturn in the economy is not yet being felt by all. This muted level of increased consumer spend, coupled with legacy issues such as debt levels, means that it is likely to remain a difficult environment for many Irish retailers in the coming months.
"In terms of the outlook across the board, we are seeing some positive indicators. However, one in five SME corporate loans is non-performing, representing approximately €7.bn. In addition, the cost of debt to SMEs has been increasing over the last number of years." PAUL O'DONOGHUE