Firms ‘at risk of closure’ up 10%

THE number of Irish companies in serious danger of going out of business has shot up by 10% since the beginning of this year, according to a new study.

According to a “stress test” survey of 35,000 companies — undertaken by business information and risk agency, Vision-net — covering the first quarter of 2011, almost half (48%) are “showing signs consistent with business failure”. That marks a 10% increase on the previous quarter; the last three months of 2010.

The latest survey from Vision- net found that 16,800 of the 35,000 respondents are now officially in the high-risk category and that while 70% — or 24,500 — filed accounts during the quarter, 4,500 of those firms were late with their returns.