Increase in insolvencies as Government covid supports end

Unviable 'zombie businesses' had been kept open, leading to a rise in closures once supports were removed, says economist

CRIFVision-Net reported a 70% year-on-year increase in insolvencies in the first quarter.

Insolvencies have risen in the first three months of the year, following artificially low levels during the same period in 2022, as the Government wound up supports introduced to help businesses stay open during the covid pandemic.

Economist Jim Power said many “zombie businesses” which were not viable were being kept open through these supports, leading to a rise in business closures once they were removed.