The latest quarterly insolvency statistics published today by Deloitte show that the number of corporate insolvencies has fallen by 14% in 2017 compared to the same period in 2016.
 
So far in 2017 there have been 657 corporate insolvencies, compared to 765 in the same period in 2016. Of the 657 corporate insolvencies, creditors’ voluntary liquidations accounted for the majority, with 393 recorded in the period. This is a decrease of 12% on the same period last year when there were 448. It represents 60% of the total recorded.
 
Looking at the ‘Top Five’ industry sectors, it was the service industry which recorded the most insolvencies to date in 2017 with 229 appointments (35%). This is just a 4% increase on the same period in 2016 when 220 appointments were recorded. The construction saw a decrease of 31% from the comparable period recording 92 appointments. The retail sector accounted for 12% of the total with 77 insolvencies, an increase of just 1% on 2016.  The hospitality sector is fourth with 69 insolvencies, 10% of the total and down 18% from last year. Finally in fifth, the wholesale sector recorded 31 insolvencies in the period which represented a 16% decrease on the same period in 2016 (37 cases).  Of these 31 cases, the majority of appointments were in the agribusiness and food areas.
 
Receiverships accounted for 205 (31%) of the total corporate insolvencies to date in 2017, down 25% on the same period last year. This mix of insolvencies is typical of prior periods.
 
Geographically, the highest number of corporate insolvencies in the period was recorded in Leinster with 66% of total appointments. This is consistent with the same period last year where Leinster again had approximately 66% of all corporate insolvency appointments.  In the current period Munster had 19% of appointments, Connaught 14% and Ulster just 1%, again showing consistency with the same period last year. 
 
Commenting on the figures, Partner in Deloitte Restructuring Service, David Van Dessel said, "Looking generally at recent results it may be that we are now entering a period where the total number of corporate insolvencies begins to level out somewhat. Looking at the overall trend of each year since 2007, the highest number of insolvencies was seen in 2012 with 1,684.  The number recorded each year has been declining consistently since then."

He added, "Early action by business owners is imperative for successful restructuring. Company directors are urged strongly to seek assistance in addressing their financial difficulties before it’s too late to take remedial action."

Source: www.businessworld.ie