Examinerships help to save more than 1,200 jobs in first half of the year

More than 1,200 jobs were saved as a result of firms entering examinership in the first half of the year.

The Hughes Blake SME Examinership Index published yesterday shows that 794 jobs were saved in the second quarter of the year — with sports retailer Elverys accounting for 654 of these.

Six companies exited the examinership process in the last three months, including five small and medium enterprises. These firms can look forward to operating in a changed environment as they exit examinership, according to Hughes Blake Chartered Accountants managing partner, Neil Hughes.

“From our perspective as auditors of a wide range of owner managed, entrepreneurial and family firms, a corner has most certainly been turned regarding their trade. The feedback that we’re getting from the wide range of organisations we work with is that business is more robust than it has been in some time... Each firm is emerging from examinership into a new economy where they will be free to thrive and it is hoped serve as valued local employers for years to come,” said Mr Hughes.

The results show a greater willingness of smaller firms to utilise examinership as a means of potentially saving their firm, according to the index. However, Mr Hughes warned that a host of businesses may be destined for insolvency which could hinder a lasting economic recovery.

“The reality on the ground faced by many firms is that the ongoing recovery has come too late to enable them to meaningfully service their debts. Over the past number of years, the incentive has simply not been there for corporate borrowers which have fallen behind in their repayments to engage in a realistic assessment of the financial situation.

“As long as a large number of family businesses remain in this situation around the country, a widespread lasting Irish economic recovery will remain elusive. Ireland is not best served by having thousands of zombie SMEs lurch out of this recession,” he said.