Less companies going bust in Ireland

The figure of 96 marks a drop of 28pc when compared to the previous month and a 13pc decrease on the number of insolvent companies in January 2010.

New statistics released today by InsolvenyJournal.ie show that three companies went out of business per day for the first month of 2011. 

Commenting on the figures, Ken Fennell, a partner with kavanaghfennell, the firm who compile the data said, “While the reduction in insolvencies both from December and year on year comparison is welcome news it is a little early to predict if the rate of insolvencies have peaked and it will be interesting to see the figures for the first quarter of 2011 in comparison to 2010.”

Unsurprisingly,construction was the worst affected industry with 24 insolvencies or a quarter of the overall total. However, this is a decrease on December which saw 40pc of insolvencies in the construction sector. 

The manufacturing industry also saw a drop from 10 insolvencies in December to 3 in January.

The hospitality industry had 15 businesses go bust, while retail saw nine companies close. Both figures were about the same in December.

Fennell said the survey predicts there will be a fall-off in the rate of construction insolvencies but it will be offset by a rise in other sectors.

He added, “We would expect a possible increase in the number of insolvencies in both the hospitality and retail sectors over the coming months.” 

There were no court-appointed liquidations in January.

Two applications for court protection were granted by the High Court, with CB Deli Limited and Cantec (North East) Limited both entering examinership during January. 

Examinerships are likely to increase in 2011 as companies continue to struggle.