AROUND 33 IRISH companies went out of business every week for the first quarter of 2011.
A total of 396 companies went bust from January to the end of March – but this figure was slightly down on last year’s total of 409. Some of this quarter’s insolvencies included the high-profile failures of The Sunday Tribune, the Plaza Hotel in Tallaght and Total Fitness gyms.
- The figures were released by InsolvencyJournal.ie which found that construction is still the worst affected industry in Ireland – the sector accounted for 28 per cent of the total insolvencies in Q1 of 2011.
- The retail sector is also suffering – 37 retail businesses went bust in the final quarter of 2010, but there were 54 insolvencies in that sector in the first quarter of 2011.
- There were 56 insolvencies in the hospitality sector in Q1 of 2011 – that is up from 51 in Q4 of 2010.
Ken Fennell of Kavanagh Fennell, the firm who compiled the data for InsolvencyJournal.ie, said that the figures were in line with expectations and the year-end prediction for 2011 insolvencies stands at 1,500 or more. He said:
The trend in retail is worrying in that corporate retail insolvencies have increased significantly in the first quarter accounting for 14 per cent of the overall total of insolvencies. The increase in the first quarter total of hospitality failures is not surprising bearing in mind the continued downward pressure on pricing and lack of consumer confidence.
Dublin had the highest number of insolvencies at 139; Cork had the second highest, 9 per cent, with 35 insolvencies.
Court-ordered liquidations accounted for just 7 per cent of the total; creditors’ voluntary liquidations accounted for 77 per cent. One per cent (six cases) were applications for High Court protection; 15 per cent were receiverships.
The total number quoted here does not include personal assets receiverships.