| 13.8°C Dublin

Close

Premium


We face worst year ever for firms going bust - and there's Brexit still to come

Dan O'Brien


Close

Crunching numbers: David Van Dessel of Deloitte Ireland said more companies were being pushed towards bankruptcy. Photo: Jason Clarke

Crunching numbers: David Van Dessel of Deloitte Ireland said more companies were being pushed towards bankruptcy. Photo: Jason Clarke

Crunching numbers: David Van Dessel of Deloitte Ireland said more companies were being pushed towards bankruptcy. Photo: Jason Clarke

More than 10 companies a week went bust last year in the State after their creditors forced them into liquidation. A lot more businesses quietly and voluntarily went out of business.

That is the nature of a market economy even in the best of times, and last year was about as good as it gets. Now we are plunging into the worst of economic times. Tens of thousands of firms, employing hundreds of thousands of people, are in serious trouble in this country. Much of the rest of the world is in the same boat.

Most Irish businesses have either no cash coming in or have much reduced incomes, according to the latest CSO survey. Barring a medical breakthrough of miraculous proportions in the very short term, 2020 will be the worst year for corporate deaths since the depths of the last recession. It could easily become the worst year ever.