There was a 6 per cent rise in the numbers of companies going to the wall in their first ten months of this year compared to the same time 12 months ago, according to corporate insolvency totals released by insolvencyjournal.ie. Insolvencies for October totalled 126, bringing the first 10 months of 2012 total to 1,408.
Although this is a 6 per cent increase on the first 10 months of 2011 there has not been any significant month on month increase over the last three months which would suggest a definite levelling off in the number of insolvencies.
The number of receivership appointments for October was 32, bringing the total of receiverships for the year so far to 329, a 54 per cent increase when compared to the same period last year.
The motor industry was dealt a hard blow during October with the appointment of kavanaghfennell as receiver to Bill Cullen’s motor group bringing the closure of his car dealerships in both Airside and Liffey Valley in Dublin.
Business failures in the motor industry increased from 1 in September to 5 in October.
Ken Fennell of kavanaghfennell believes that “the motor sector looks likely to remain under pressure for the remainder of 2012 and into the first few months of 2013 with the latest European car sales figures revealing a decline for the twelfth consecutive month this industry is seeing an increasing decline in the market.”
There were two further examinerships in October compared to 1 in September bringing the total for January to October this year to 21, a 31pc increase on the yearly totals of 16 for both 2011 and 2010. This is a welcome increase as the examinership process becomes an attractive option for those businesses that have the opportunity to restructure and continue to trade. Another positive examinership story is Cappoquinn which it is believed is now close to a deal with more than 135 jobs looking set to be saved with the sale of the business this month.
The hospitality and retail sectors both suffered increases in the levels of insolvencies during October. There was an 89pc rise in hospitality failures from 9 in September to 17 in October.
Total retail failures from January to October totalled 176 which is a 3pc decrease when comparing the same period last year (182).
With the courts back in session, court liquidations saw an increase from a low of two in September to 9 in October. The most high-profile of these cases was the Treasury Group companies which were wound up by KBC.
“Our prediction for Corporate Insolvencies for the year remains at over 1,700 insolvencies. The latest figures do not suggest totals will drop during the remainder of 2012 or into the first quarter of 2013. Hospitality, retail and motor industries we believe will be the sectors continuing to be hardest hit,” said Ken Fennell of kavanaghfennell.
