Six company closures per day this year

An average of six companies folded per day in the first quarter of 2011, it has been revealed.

New statistics released by InsolvencyJournal.ie show that a total of 396 corporate insolvencies from January to March.

The figures are slightly down on Q1 last year’s total of 409.

Construction is the worst affected industry so far this year, accounting for more than 28% of the total.

Hospitality jumped from 51 insolvencies in the last quarter of 2010 to 56 in the first quarter of 2011.

Retail has seen an increase from 37 insolvencies in the last quarter of 2010 to 54.

“The trend in retail is worrying in that corporate retail insolvencies have increased significantly in the first quarter accounting for 14% of the overall total of insolvencies,” said Ken Fennell, partner with kavanaghfennell, the firm who compile the data.

“The increase in the first-quarter total of hospitality failures is not surprising bearing in mind the continued downward pressure on pricing and lack of consumer confidence.”

Dublin recorded the highest number of corporate failures with 139 insolvencies, or 35% of the national total, while Cork recorded the second highest number with 35 insolvencies or 9%.