54% jump this year in the number of companies going into receivership

The number of companies going into receivership has jumped by 54% in the first 10 months of the year, with the motor trade in particular coming under severe pressure.

Data compiled by insolvencyjournal.ie shows the number of receivership appointments for October was 32, bringing the total for the year so far to 329, a 54% rise on the corresponding period last year.

“The motor industry was dealt a hard blow during October with the appointment of Kavanaghfennell as receiver to Bill Cullen’s motor group, bringing the closure of his car dealerships in both Airside and Liffey Valley.

“Business failures in the motor industry increased from one in September to five in October,” the journal stated.

Ken Fennell of Kavanaghfennell said: “The motor sector looks likely to remain under pressure for the remainder of 2012 and into the first few months of 2013.

“With the latest European car sales figures revealing a decline for the 12th consecutive month this industry is seeing an increasing decline in the market.”

Corporate insolvency totals for October hit 126, bringing the first 10 months of 2012 total to 1,408.

“Although this is a 6% increase on the first 10 months of 2011, there has not been any significant month-on-month increase over the last three months which would suggest a definite levelling off in the number of insolvencies,” the journal said.

There were just two examinerships approved by the High Court in October, compared with one in September, bringing the total for January to October this year to 21 — a 31% increase on the yearly totals of 16 for both 2011 and 2010.

The hospitality and retail sectors suffered increases in insolvencies in October. There was an 89% rise in hospitality failures from September to October.