Company failure rate set to exceed 2010 figure

THIS year is on course to top 2010 in terms of company failures, as figures show that an average of 33 companies per week went bust between January and the end of April.

The new data from InsolvencyJournal.ie measured 162 insolvency appointments for April alone; with the total for the first four months of the year amounting to 558 — 3% up on the same period last year. There was also a 15% year-on-year increase in the number of firms going into receivership during the period.

“Increased levels of enforcement action by NAMA and the banks,combined with continued weak consumer sentiment in the retail sector, suggests that there will be no reduction on the 2010 level of insolvencies,” said Ken Fennell of leading corporate recovery agency, Kavanagh Fennell, which publishes the Insolvency Journal.