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Number of Irish firms going bust still rising

More Irish companies have gone bust in the first half of this year than in all of 2008, according to new statistics.

In the latest survey from InsolvencyJournal.ie, a website run by Kavanagh Fennell, an accountancy firm which specialises in insolvencies, 792 businesses went under in the first half of 2010. This is an increase of 27% on the same period last year. In 2008, 773 businesses failed for the entire year.

Tom Kavanagh, partner with Kavanagh Fennell, said: “It is probable that there will be close to 1,800 insolvencies this year and if the figure for personal asset receiverships is included, insolvencies are likely to be over 2,000 for the year.”

The figures come despite official figures showing the Republic has officially emerged from recession, with the economy growing by 2.7% in the first three months of 2010.

Construction companies were the hardest hit by the tide of insolvency. The survey said 240 companies, or about a third of the overall number of insolvencies, were construction-related — an increase of 17%. Retailers continued to be affected by high rents and reduced consumer confidence. In six months, 95 companies went bust in the sector — up 12% on last year.

Belfast Telegraph