Report shows 3% rise in number of corporate insolvencies

The total number of corporate insolvencies has increased slightly compared to last year.

So far this year, 1,547 companies went out of business, a 3% rise when compared to the January to November period in 2011.

The construction sector is still the worst affected, accounting for a quarter of the total insolvencies this year.

Insolvencyjournal.ie says it expects the sector to continue to suffer into 2013.

One area which is showing improvement is the hospitality sector, where insolvencies are down 22% year-on-year.

Novembers’ figures show an increase in retail insolvencies up from 18 in October to 28 recorded in November.

The total number of retail insolvencies year to date, stands at 204, no change on the same period last year.

Commenting on expected retail performance in December, Mary Lambkin, Professor of Marketing, UCD Smurfit School, and one of the authors of the latest Consumer Market Monitor, said: "Overall the retail sector has continued to be weak in 2012.

"If this downward trend in consumer spending continues we can expect a further decline in consumer confidence as we approach Christmas.

"Retail sales account for about 50% of consumer spending and combined with the looming December budget, this will have a serious knock-on effect for the sector. It seems paradoxical that the Budget comes at a time when it can do maximum damage to consumer spending.

"Arguably, it would be better to time it for March or perhaps October, to avoid clashing with the peak retail season."

This year has also seen a shift in the type of corporate recovery measures used to deal with insolvencies.

There has been a 43% increase in receiverships from January to November 2012 when compared to the same period in 2011, up from 253 to 362, year-on-year.

The overall number of examinerships recorded year to date is up 73% at 26, compared to 15 cases last year.