Busts likely despite dip in insolvency

A significant number of company failures are expected to materialise this year, despite new figures showing a continued steady decline in the level of corporate insolvencies during the first quarter of the year.

According to corporate recovery and insolvency experts, Kavanagh Fennell, the first three months of this year saw a near 13% year-on-year reduction in insolvencies, with 303 failures being recorded compared to 347 for the same period last year.

The company said that, while the first quarter figures continue to paint a positive picture, it expects to see “a significant number” of insolvency actions this year as a whole, mainly in the property sector and helped by new legislation making it cheaper and easier for firms in trouble to apply for examinership.