We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

danielmoyle via Creative Commons

Liquidations rise in Q3, but fewer companies become insolvent

Latest statistics show that insolvencies in the construction sector are falling – but are increasing in retail and hospitality.

THE NUMBER of companies becoming insolvent in Ireland fell by 8 per cent between the second and third quarters of this year, according to figures released by

Meanwhile, liquidations (both voluntary and court liquidations) rose 12 per cent in Q3 2011 compared with the third quarter of 2010 – up from 283 to 318.

In total, 389 insolvencies were recorded in the quarter ending September 2011 and insolvencies have reached 1,208 for the year to date. By this time last year, there were 1,132 insolvencies.

The number of receivers being appointed to businesses fell for the third month in a row in September, falling from 17 in August to 12 last month. However, just three companies went into examinership – a “disappointingly low” figure, according to Ken Fennell of KavanaghFennell, which compiled the statistics.

“The total number of examinership appointments remain disappointingly low considering this is the only form of corporate restructuring available for Irish businesses and we believe changes to the examinership legislation is urgently needed,” Fennell said.

The latest statistics show a 12 per cent decrease in insolvencies within the construction industry, from 115 in Q3 2010 to 101 for the same period of this year. Meanwhile, insolvencies within the retail and hospitality industries rose by 7 and 22 per cent respectively.

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.