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Four companies went out of business each day in January - report

The number of corporate insolvencies last month marked an increase of almost 40 per cent on the same period last year.

MORE THAN FOUR Irish companies went out of business every day in the first month of this year – an increase of 39 per cent on the same period last year, according to newly released figures.

In total, 135 companies went into insolvency in January and the number of receiverships increased by 33 per cent from the previous month. The services industry most badly affected, accounting for 32 per cent of the overall figure of insolvencies – a 61 per cent increase from December’s total.

A proportion of the insolvencies in the services industry can be “linked directly” to the construction industry be badly hit, according to InsolvencyJournal.ie. Some 35 corporate insolvencies in construction were recorded during the month.

Regionally, Leinster was the worst-hit area, representing 66 per cent of the overall total number of insolvencies.

Commenting on the figures, Ken Fennell partner with Kavanaghfennell, the firm who compiled the data, said that the overall increase in total when compared to the same period last year was “not surprising” considering continued weak consumer sentiment as a result of the harsh budgetary measures introduced in the latter half of last year.

Despite the rate of insolvencies in January, Fennell said some positive developments could be expected later in the year. ”We predict there will be a fall-off in the rate of construction insolvencies to be offset by a rise in other sectors, in particular the retail and hospitality sectors’,” he said.

Creditors’ voluntary liquidations accounted for 60 per cent of all insolvencies for the month, while examinerships accounted for 5 per cent of the overall total. Seven petitions were lodged in the courts, which could indicate that the Revenue Commissioner is taking a harsher stance on non-tax compliant companies, InsolvencyJournal.ie said.

Fennell said that further examinerships were expected during 2012 “as trading companies struggle under on-going pressure, and larger distressed companies may attract interest from foreign investors with capital”.

The report welcomed the new Personal Insolvency Bill, due to come into effect in March, which it said would “change personal insolvency in Ireland and will begin to deal with the issue of unsustainable personal debt”.

The Bill, being introduced following a requirement laid down by the EU and IMF as part of the Ireland’s bailout package, will follow the recommendations contained in the Law Reform Commission Report of December 2010 which proposes an automatic discharge from Bankruptcy from 12 years to three, providing that strict conditions are met.

Read: Government’s new debt regime may allow mortgage debt to be written off>

Read: Loans to households, businesses declined during December>

Read: Consumer sentiment picks up after December dip – but shoppers still gloomy>

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    Mute Owen Lynch
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    Aug 19th 2016, 5:14 PM

    Dublin Corpo have ordered a big whale barrow to help move it.

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    Mute Jeni Moriarty
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    Aug 19th 2016, 5:16 PM

    Bahahaha i lol,d

    48
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    Mute Donal Martin
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    Aug 19th 2016, 6:30 PM

    Stealing that joke. Good man

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    Mute Desmodromic
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    Aug 19th 2016, 7:21 PM

    Tis true, then they’re taking it to the whale weigh station!!

    58
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    Mute Free comment ratings
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    Aug 19th 2016, 8:01 PM

    You can steal a joke? Bahhahaha. I haven’t heard that since I was 5.

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    Mute Tony Skillington
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    Aug 19th 2016, 9:59 PM

    Come on…lets go poke it with a stick..

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    Mute John Mossy Naz Scales
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    Aug 20th 2016, 12:03 AM

    Cracking reply sir

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    Mute Alan Kelly's Ego
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    Aug 19th 2016, 4:39 PM

    I failed to stay away from a beached whale in coppers one night. Take heed folks, it ain’t pretty

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    Mute Andy Kennedy
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    Aug 19th 2016, 4:43 PM

    She probably feels the same way about you.

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    Mute Suzie Sunshine
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    Aug 19th 2016, 4:50 PM

    Alan , I laughed at that. . Even though I probably shouldn’t have …

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    Mute Alan Kelly's Ego
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    Aug 19th 2016, 4:58 PM

    I have no doubt she did Andy. It turned into a very awkward situation for both of us. That’s why the warning must be heeded

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    Mute Get Lost Eircodes
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    Aug 19th 2016, 5:27 PM

    ah no one of the Egyptian TV news anchors….RIP

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    Mute Brian Farrell
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    Aug 19th 2016, 8:17 PM

    Did you lose your wedding ring.

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    Mute Del Haven
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    Aug 19th 2016, 4:42 PM

    Risk of infection from everything these days. Away off and see the dead stinky whale if yis want.

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    Mute Paddy Byrne
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    Aug 19th 2016, 4:43 PM

    Your a fool.

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    Mute Niall Lonergan
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    Aug 19th 2016, 4:48 PM

    *You’re

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    Mute ray.farrelly
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    Aug 19th 2016, 5:13 PM

    Niall. Did you just on here to correct people.

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    Mute Paddy Byrne
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    Aug 19th 2016, 5:42 PM

    Didn’t know this was english class. Nothing better to do than comment on peoples grammar?

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    Mute Del Haven
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    Aug 19th 2016, 5:54 PM

    He was pointing out how foolish to make a grammatical error when calling someone a fool. People’s grammar is not the issue.

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    Mute Brian Farrell
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    Aug 19th 2016, 8:19 PM

    Their there they’re.

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    Mute Tony Skillington
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    Aug 21st 2016, 10:54 AM

    People’s grammar….

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    Mute Danny G
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    Aug 19th 2016, 5:17 PM

    “Stay away from the whale if you don’t want to get Moby Dick!!”

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    Mute Get Lost Eircodes
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    Aug 19th 2016, 5:26 PM

    Is Minke southsoider speak for Manky?

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    Mute Agrippa
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    Aug 19th 2016, 8:26 PM

    “Warning, some viewers might find pics offensive” FFS nanny state in all its glory, look at the milennials, offended by their own shadow!

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    Mute Neal not Neil
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    Aug 20th 2016, 9:01 AM

    It’s just good manners. You cover your mouth when you cough and you do people the basic courtesy of warning them before you shove a picture of a corpse in front of them.

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    Mute Neal not Neil
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    Aug 20th 2016, 9:02 AM

    Also, The Journal is not a state.

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    Mute Bondage Informer
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    Aug 19th 2016, 10:22 PM

    Death by plastic? Other dead whales have plastic trapped in their stomachs – plastic is a serious problem for the oceans.

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    Mute Del Haven
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    Aug 19th 2016, 4:51 PM

    So close, Paddy.

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    Mute Pat O'Brien
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    Aug 19th 2016, 6:14 PM

    Enjoy your fish and chips folks. The oceans have been well and truly raped. #theydiewedie

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    Mute Séamus Longshanks
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    Aug 19th 2016, 6:08 PM

    I am always amazed how officialdom gets all excited by something as common as a beached whale.

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    Mute David Lewis
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    Aug 19th 2016, 5:40 PM

    Brown Bread

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    Mute Mistur Haych
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    Aug 19th 2016, 11:34 PM

    Is that Mary Harney? Stay back lads, she’s only playing dead….

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    Mute Warren McAllister
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    Aug 19th 2016, 5:27 PM

    Hope DLRCOCO have seen this video: https://www.youtube.com/watch?v=8Vmnq5dBF7Y

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    Mute Jane Baird
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    Aug 20th 2016, 1:01 PM

    So sad at absolute lack of humanity evident. Appallingly insensitive.

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    Mute Brown Boots
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    Aug 19th 2016, 8:05 PM

    Tasty!

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    Mute Michelle Power
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    Aug 20th 2016, 8:55 AM
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    Mute Michelle Power
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    Aug 20th 2016, 8:57 AM
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    Mute brian magee
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    Aug 20th 2016, 9:36 AM

    Interesting to see all the gas build up that causes it to bloat and float

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