Over 1,000 companies have gone out of business so far this year, according to new figures released today.
The data, compiled by compiled by accountancy firm Kavanagh Fennell, show that 1,012 companies collapsed between January and August, an increase of 14 per cent on the same period last year.
However, the number of insolvencies dropped dramatically in August, falling from 125 in July to 95 in August. This is the lowest monthly total for insolvencies so far this year and the lowest since January 2009.
Kavanagh Fennell - which publishes InsolvencyJournal.ie -said that while the number of insolvencies recorded in August fell, an increase is expected again before the year ends.
"The decrease could be due to a traditional seasonal slowdown in August and insolvencies are likely to increase again in the final quarter of 2010 in line with the 2009 trend. Based on our analysis we expect the last quarter to show a substantial increase in the number of insolvencies," said Ken Fennell, partner with Kavanagh Fennell.
The figures show that 309 construction firms collapsed in the first eight months of the year but the rate of failure in the sector appears to be slowing down.
"There are definite signs that the construction sector is close to the bottom," said Mr Fennell. "The number of insolvencies in the sector is not increasing as rapidly as in 2009 and the final quarter of 2010 will give a firmer indication on whether the industry has finally reached the bottom."
The services sector recorded the second highest level of insolvencies with 187 in the first eight months of the year. This represents an increase of 8 per cent compared to the same period a year earlier when 173 company failures were recorded.
Insolvencies in the hospitality trade also increased with 128 failures recorded , up 27 per cent on the same period last year.
For the first time in 2010, insolvencies in the retail sector have not increased significantly compared to the previous year with 124 firms going bust so far in 2010 – the same figure recorded for the first eight months in 2009.
Dublin recorded the highest number of insolvencies in the country this year with 414 firms going bust in the year to the end of August.
At the opposite end of the scale, Carlow has recorded the lowest level of insolvencies, with just two companies in the county going out of business.
So far this year, examiners have been appointed to just nine companies, compared to 24 in 2009 and 18 in 2008.
Receivers were appointed to 12 companies in August, bringing the total number of Irish firms now in receivership to 155. This represents a 94 per cent increase on the same period last year and is up 400 per cent on 2008 figures.
The receivership totals do not include personal asset receiverships as no public record is available. If these were included, the figure would be expected to be higher.
