Almost seven companies folding every day last month

An average of almost seven Irish companies went bust every day from October 1-25, according to the latest figures from the credit risk analysis firm Vision-net.

Vision-net’s figures, covering the period between October 1 and 25, show that 168 companies were declared insolvent - up 39% on the same month last year.

Of those, 110 were liquidated, 54 entered receivership, and an examiner was appointed to four companies.

Receiverships more than doubled over the same period last year, and receivers were appointed to 10 companies to which businessman Bill Cullen is linked, according to Vision-net.

A county-by-county breakdown of the figures for this month shows that Dublin accounted for 48% of all insolvencies, with Wexford the second highest on 10%.

In all, 94 companies held meetings of creditors showing short-term debts of more than €38m.

However, Vision-net’s figures recorded that 3,053 company and business start-ups this month - up 19% on the same month last year – showing an average of 122 start-ups each day.

The professional services sector accounted for almost one-quarter of new companies, followed by the wholesale and retail sector at 12%, social and personal services at 11%, and information technology at 8%.

In the first nine months of the year, 10,439 companies were formed but 10,635 collapsed, showing a net loss of 196.

Companies in the professional services, construction, wholesale and retail, real estate, social and personal services, and manufacturing sectors made up 72% of closures this year so far.

Vision-net’s figures for September show that 455 registered commercial and consumer judgements worth €26.5m were awarded in the courts.

Of these, 296 were judgements awarded against consumers worth €18.8m, with the Revenue Commissioners, credit unions, banks, real estate and utilities making up most of the creditors.

Christine Cullen, managing director of Vision-net, said the figures show that the domestic economy is showing few signs of uplift.

"While the economy remains challenging, companies can get a better fix on opportunities and pitfalls in doing business by professionally researching the trading environment and making key decisions based on sound intelligence," said Ms Cullen.


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