The total number of corporate insolvencies to the end of Quarter 3 2016 have totalled 765, according to the latest analysis from Deloitte.
This represents a 3% increase on the same period in 2015 and is a reversal of the decreases seen in the first half of 2016. The total number of insolvencies in the third quarter of the year alone was 255, an increase of 18% on the equivalent period last year.
An analysis of industry sectors shows that the services sector experienced the most corporate insolvencies so far this year, with 220 (29% of the total), up 104% from the same period last year where there were 108 insolvencies.
This is followed by the construction industry at 133 (17%), up from 92 last year, an increase of 45%. The hospitality industry was third with 84 (11%) corporate insolvencies, largely unchanged from the previous year. The retail industry was fourth with 76 (10%), down 29% on 2015.
Of these 765 corporate insolvencies, creditors’ voluntary liquidations accounted for the majority with 448 recorded in the period (59%). This is down 10% from the same period last year where there were 497 creditors’ voluntary liquidations.
Receiverships accounted for 274 (36%) of the total corporate insolvencies so far in 2016, up by 79 appointments from 195 in the same period last year.
There were 32 court liquidator appointments in the nine month period, which is similar to the same period in 2015 where there were 34 appointments.
Geographically, the highest number of corporate insolvencies in the period was recorded in Leinster with two thirds (66%) of the total appointments. This is a slight increase on the same period last year where Leinster had approximately 64% of all corporate insolvency appointments.
Munster had 23% of appointments, up from 21% the previous year while Connaught was consistent with last year at 9%. Finally, Ulster with just 3%, was down from 6% with last year.
Partner in Deloitte Restructuring Services at Deloitte, David Van Dessel says, "It is clear that the upturn in economic conditions has not lifted all boats. While many companies survived through the eye of the recession the pressure that factors such as rising costs and a more cautious consumer bring means that companies have succumbed before the upturn can have a meaningful impact on their business."
Source: www.businessworld.ie
