Business failures up by a third

Business failures in Northern Ireland have rocketed by a third and bankruptcies by almost 70% so far this year.

Shock figures from business information providers D&B showed that in the 18 weeks to mid-May 284 businesses ceased trading – a 32% increase on the same period in 2003.

Just over 30% of this year’s failures were amongst larger, limited, companies.

The balance represented by bankruptcies involved individuals, sole traders and partners in mostly smaller undertakings, including retail and service providers.

Compared with the same period last year bankruptcies are soaring, said D&B.

Failures among individuals and unincorporated businesses are nearly 70% up, while the number of retail collapses is currently running at twice the 2003 rate.

Jonathan Cushley, general manager D&B Ireland & Northern Ireland said: “Whilst overall business failures are increasing, the growth in bankruptcies reflects an alarming rise in personal debt and small business collapse.

“The small, entrepreneurial, sector of the economy – which has traditionally created wealth and employment in local communities and rural areas – is clearly under considerable pressure.”

Equally worrying, he said, was the almost doubling of retail collapses. It suggested that fears of overcapacity in retailing were not exaggerated.

“If these trends continue, it will be a very difficult year for the small business sector,” said Mr Cushley.