More than 1,100 companies went out of business in the first nine months of the year, according to new figures released today.
Data from InsolvencyJournal.ie, a website run by Dublin insolvency firm Kavanagh Fennell. indicates that 1,132 firms folded between January and September, up 12.5 per cent on the same period in 2009.
The numbers increased from 95 in August to 120 in September. The September figure is a marginal increase on last year’s total of 114 insolvencies for September 2009.
The figures for the third quarter are down marginally on the same period last year. However, the number is expected to rise for the final quarter. In 2009, almost one third of total insolvencies were recorded during the final three months of the year.
Construction continues to be the hardest hit industry, with 351 firms going out of business so far this year. During September, there were 42 insolvencies, the highest number of any sector and an increase on the August figure of 32.
However, Ken Fennell, a partner with Kavanagh Fennell, said there was evidence of some degree of stabilisation in the sector.
The services industry has also been hit hard with 207 insolvencies this year. Last month, 20 firms went bust, a rise of 10 per cent on August.
Elsewhere, there were 16 insolvencies in the retail sector in September, bringing the yearly total to 140, and 15 in the hospitality industry for a total of 143 in the first nine months of 2010.
There was some good news in the IT sector, where there was a decrease in the level of insolvencies, with just 1 in September, down from 3 in August, 7 in July and 6 in June.
Regionally, Ulster and Munster were hit hardest proportionately. In Ulster the number of insolvencies rose from just one in August to nine in September. In Munster the number more than doubled, rising from 12 insolvencies in August to 26 in September.
“We’re seeing some sort of a bottoming out of the figures. On a month-to-month basis the number is up in September, but the drop in August was seasonal," said Mr Fennell.
"The numbers for the entire year look as if they will be up slightly on last year, as we predicted at the start of the year. We’re probably looking at somewhere around the 1,500 mark. The figures show that the trading environment is still challenging for businesses, but there is some sort of stabilisation taking place,” he said.
According to the latest figures, receivers were appointed to 18 companies in September, to bring this year’s total up to 173.
The number of examiners appointed was down significantly last month compared to the same month in 2009. Two appointments were made, compared with seven appointments in September 2009.
The number of creditors’ voluntary liquidations (CVL) rose last month, up to 99 from 81 in August. So far this year there have been 892 CVLs, compared to 810 and 369 for the same periods in 2009 in 2008, respectively.
