February failures were the worst since 2009
MORE companies went out of business last month than at any point since 2009, new figures show. According to InsolvencyJournal.ie, a website which tracks insolvency rates, 153 firms went bust in February.
That was a 59pc increase on January, when 96 firms went out of business. Those numbers equate to an average of five companies going under every day.
The 153 companies was the most to go under since December 2009, and the second highest since the website started tracking such data.
All sectors saw some increase from January. Construction was again the worst affected with 47 insolvencies. Retail jumped from nine in January to 25 in February and hospitality from 15 in January to 19 last month.
Unsurprisingly, Leinster was the worst hit province, accounting for 59pc of the overall total. Ulster and Connacht were again the least affected with 4pc and 15pc respectively, while Munster accounted for 22pc.
Nearly three-quarters of insolvencies came about through creditors' voluntary liquidations, while court liquidations accounted for just 7pc. Receiverships showed a significant increase from nine in January to 31 in February -- the highest number recorded.
Kavanagh Fennell partner Ken Fennell, whose firm compiles the data, said the figures, while high, were to be expected.
"February is traditionally a very active month for insolvencies as companies have made decisions to cease trading during January resulting in higher insolvencies this month."
"The hospitality sector will continue to suffer during 2011 with high-profile hotels such as The Tallaght Plaza Hotel, The Heritage Hotel and Shandon Hotel entering insolvency in February," Mr Fennell said.