Company insolvencies set to hit 1,500 by end of the year

THE number of firms that went bust increased last month and the figure is expected to hit 1,500 by the end of the year.

According to figures from Insolvency Journal, 1,392 companies have gone out of business from January to November this year, an 11% increase on 2009 figures.

Last month the number of construction insolvencies rose following a low in October. There was a drop, however, in insolvency figures for retail and hospitality.

There was a slight increase in the number of examinerships for November with four examiners appointed, up from one in October and three for November last year. Examiners were appointed to Farm Supply Stores Limited, Rockwell Constructions Limited, Cash Flow Services Limited and, most recently, Four Star Pizza.

The number of insolvent companies in November totalled 142, an increase of 24 on October’s 118 and an increase of 21 on the same month last year.

Partner with kavanaghfennell, the firm who compile the data, Ken Fennell said: “The figures indicate that as predicted yearly totals are heading for 1,500 and traditionally the last quarter is the most active for insolvency activity.”

Leinster was the worst hit with 90 insolvencies, 63% of the total for November. Of this, Dublin accounted for 62, an increase of 16 on October.

Munster insolvencies increased from 25 in October to 39 in November with Cork being worst hit with 20, 50% more than the figure of 10 for October.

Failures in the construction industry increased from 26 in October to 42 in November, the same figure as September and the third highest monthly total this year.

“Some high profile cases in the construction sector found themselves in difficulty and went out of business in November, these included such companies as Pierse Group & related companies and Michael McNamara & Company. Not surprising the construction sector continues to suffer the highest number of casualties,” said Mr Fennell.

In the retail sector there was a drop in both retail and hospitality insolvencies with retail decreasing from 16 in October to 12 in November, bringing the total so far this year to 168. Hospitality fell 33% from 21 in October to 14 in November bringing the yearly total to 178.

The number of creditors’ voluntary liquidations (CVL) also increased last month, up to 107 from 91 in October. So far this year there have been 1,090 CVLs, compared to 1,000 and 497 for the same periods in 2009 in 2008 respectively.