Insolvency rate levels out in the Republic
The number of insolvencies in the Republic appears to have stabilised but there were still four companies going out of business every day last month, according to new statistics.
The latest figures from InsolvencyJournal.ie - a website owned by accountants Kavanagh Fennell - found that 125 businesses went bust during July, compared to 132 in June.
Despite the fall in insolvencies last month, 917 companies have gone under in the first seven months of the year, an increase of 22% on 2009 and more than 150% more than the whole of 2008 when 773 companies ceased trading.
As in previous months, construction was the worst affected industry, losing 41 companies, as subdued private sector activity and a reduction in capital spending continued to cause problems.
Some 277 construction firms have collapsed so far this year, about 30% of the total, which is up 11% compared to last year.
And the retail sector continues to suffer with 18 going to the wall last month.
Six motor companies closed their doors bringing the total for the year to 28.
Despite the slight reduction in the number of insolvencies, Tom Kavanagh, a partner with Kavanagh Fennell, warned that this was not necessarily indicative of a recovery in the wider economy.
"The general perception is that there is a backlog of distressed cases and insolvencies are likely to increase during the second half of the year," he said.