The number of corporate failures has increased by 104 per cent on last year as the demise in the construction sector continues according to figures released today.
Between January and December 2008, 753 Irish companies were placed in creditors’ voluntary liquidation, High Court liquidation, receivership or examinership, up a 104per cent on last year which saw 370 corporate failures recorded in the same period, according to statistics compiled by Farrell Grant Sparks (FGS).
Some 276 or 37per cent of the failures occurred in the final three months of 2008.
The demise in the construction sector especially among small to medium-sized developers and sub contractors accounted for 299 or 40per cent of all failures.
“The ongoing reduction in house prices, significant decline in the numbers of new units being built, uncertainty regarding the availability of credit for small to medium type developers and the likely decrease in the number of people working in the sector all indicate that much uncertainty is likely to prevail in the short term.
“It is likely that margins for sub contractors will continue to be eroded due to increased competitiveness…the next 12 months in the sector will be interesting to say the least,” said Declan Taite, a partner with FGS.
Dublin accounts for the majority of failures with 333 or 44per cent of all failures taking place in the capital. There were also a significant number of increases in failures in Cork - 53 in 2008 as opposed to 27 last year.
The only county to record a decrease in failures, 4 in 2007 as opposed to 2 in 2008, was Roscommon.
