Irish insolvencies in the
year to August rose to 1,090 and are on track to reach 1,600 in 2011, bringing
the total of collapses in the 2008-2011 period to 5,300 firms.
New statistics released today by InsolvencyJournal.ie reveal that corporate
insolvency figures for August totalled 119, a 22% drop from the July total of
152. The first eight months of 2011 saw a total of 1,090 corporate
insolvencies, an increase of over seven% on the total
recorded for the same period in 2010 (1,012).
Commenting on the figures Ken Fennell of
Kavanaghfennell, the firm who compile the data commented:
“The decrease in August is not surprising as there is usually a seasonal
reduction in the number of insolvencies. We had a
comparable reduction in August last year”.
There was a significant drop in receivership
appointments during August, down to 17 from a high of 39 in July, a decrease of
56%. However when comparing year on year, there is a 16% increase in
receivership appointments from 155 during the period January to August 2010 to
180 so far this year.
According to Fennell:
“Although the reduction in the number of receivership
appointments is welcome we believe the banks and Nama will continue to appoint
receivers where they believe they have no alternative and they are of the view
that such appointments will lead to greater recoveries. The recent outcome of
the Start Mortgages case could also have some implications on future
The number of court liquidations during the month of
August dropped from 8 in July to 3 during August which is no surprise with the
Courts in summer recess. Creditor’s voluntary liquidations also dropped from 105
during July to 98 in August.
With regard to industry totals, the total number of
insolvencies in the construction industry so far this
year totalled 278, a 10% dip on the figures recorded for the same period during
2010. The retail industry year on year figures showed a 20% increase from 124
during the period January to August 2010 to 149 for the same period this year,
when comparing yearly hospitality figures there was an increase of 7%.
Transport figures increased 34% year on year with wholesale showing the most
dramatic increase of 104%, jumping from 24 January to August 2010 to 49 for the
same period this year.
“The overall trends in
corporate insolvencies for the year to date would
suggest that at least 1,600 companies will enter into some form of insolvency
arrangement by the end of the year with construction and retail continuing to
bear the brunt,” Fennell commented.