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WHILE THE ECONOMIC recovery continues to take hold, anyone with ambitions of opening their own restaurant or B & B should keep in mind that they’ll have their work cut out.
New figures from Deloitte have shown that the service sector is still most likely to be hit by corporate insolvencies.
Last year 200 businesses closed their doors after falling on hard times. This accounted for 19% of the 1,049 total closures.
Is that bad or good?
While 1,000+ business closures doesn’t sound great, things are on the up.
There has been an ongoing downward trend since 2012 when 1,684 insolvencies were recorded.
Out of the current batch 69% were voluntary liquidations, followed by receiverships (24%) and count liquidator appointments (5%).
Commenting on the figures, David Van Dessel, a partner in Deloitte Restructuring Services, noted his disappointment that the number of companies availing of examinerships had not increased.
“It is disappointing that changes, both from the Companies Act 2014 and the new ‘examinership-lite’ legislation of 2014, have not yet made an impact in 2015,” he said.
Examinerships – which involve the appointment of a third party to assist with the restructuring of a company – could potentially assist SMEs avoid liquidation, he went on to say.
Where are businesses going broke?
The majority of businesses that ran out of money last year did so in Leinster.
The province accounted for 65% of total liquidators appointed, followed by Munster with 21% of all appointments, Connaught with 9% and Ulster with only 5%.
Speculating about this year, van Dessel went on to say: “In 2016, we anticipate that the total number of corporate insolvencies will continue to decrease.
Furthermore it is expected that there will finally be an increase in the number of companies opting to restructure by way of examinership, particularly as the general improvement in the domestic economy should mean that more businesses will have a reasonable prospect of survival.
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With the pro-government Journal, things have been on the up for years. Well, things are on the up for a pampered minority, but not for the large majority. I notice the Journal, the good old Journal, did not say if any foreign multi-national went out of business. Given they pay an effective tax rate on average of 2.2% they won’t be going bust.
CMAC while a do agree with some of your comments you have to remember were not the only country competing for large multinational companies. Many other countries offer favourable tax rates to these companies. Better to have a small piece of the large pie than nothing. Also they provide large employment which raises income tax take and keeps people of the dole.
Question: why is your business coverage so monumentally sh*t? It is pointless. Just concentrate on sport & frivolous news stories.
“While the economic recovery continues” – pull other one. So now in Ireland we are to believe that over 1000 businesses is a good thing, because it’s slightly less than 3 years ago? Pffft.
What shit this is… Country is banjaxed for most left here. ..
Endas recovery is thriving, doh,the only growth in this country is homelessness and poverty under fg,lab government.
Great recovery all right are you reading this noonan
Recovery mmmm FG will drop us into crisis poverty if re-elected. Anyone who votes for the queen of soup kitchens needs to wake up fast
So what do they expect as we are still in austerity thanks to Merkel, then the government created new taxes and charges and the government has made things worse for the PESTLE Model, just to keep Germany happy with their exports…
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