|Manor Park Homes went into receivership in Oct 2011|
Over 1,900 Irish companies collapsed in year to November and according to Finfacts estimates some 5,700 companies have gone bust in the period 2008-2011. That is not the full total of firm closures as it does not include sole traders and partnerships. The failed companies in 2011 owe a total of almost €1.2 billion in unpaid debt to unsecured creditors.
Over 1,500 companies had failed in 2010.
Vision-net, a business information firm, said the hotel and restaurant sector was the hardest hit in 2011. About 3,400 of the 5,000 companies in this sector or 70% are estimated by Vision-net to be vulnerable to closure. Some 181 companies in this sector shut in 2011, accounting for 9% of all business failures.
About half the construction companies surveyed and more than half the companies in the wholesale and retail sector were also deemed to be “high risk”, showing indications of business failure, according to Vision-net.
Of 2011 failures, 73% were liquidations, 26% were receiverships and 1% were examinerships.
"Consumer sentiment remains weak, as unemployment rises and salaries drop against continuing turbulence in the global economy," according Vision-net managing director, Christine Cullen.
"In a move that is likely to thwart economic recovery, short-term unsecured creditors are still owed €1.19bn, which has serious knock-on effects for business cash flow, employment and consumer sentiment," she added.