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Dublin: 12 °C Tuesday 7 July, 2020

Six companies collapsed each day this month

Figures show there was in increase in the number of start-ups this year but the net loss was still 480 businesses.

File photo
File photo
Image: Mark Stedman/Photocall Ireland

SIX COMPANIES COLLAPSED each day in August, with more company closures than start-ups so far this year, according to the latest figures from Vision-net, an Irish business and credit risk analyst.

Figures show that 165 companies were declared insolvent this month, down 13 per cent on August last year.

99 per cent of those were liquidated, 64 entered receivership and an examiner was appointed to two companies.

Dublin had the highest percentage of closures followed by Limerick and Meath and the outstanding short term debts of 108 companies that met with creditors amounted to around €30 million.

Though the number of start-ups in the first seven months of this year increasd to 8,184, some 8,664 companies have closed during that same period representing a net loss of 480 businesses.

The figures also showed over 300 registered commercial and consumer judgments were awarded in the courts totaling €34.3 million with most awarded against consumers. The Revenue Commissioners, credit unions and banks topped the list of claimants.

Christine Cullen, Managing Director of Vision-net said the figures show that companies continue to struggle, with the trend in closures sneaking further upward.

“The trading conditions remain very challenging for companies,” she said. “High levels of unpaid debt and cash flow problems are hampering the capacity of companies to stay in business or scale and this has a knock-on impact on jobs and growth.”

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