Corporate insolvencies on the rise in the services sector

Corporate insolvencies in the services sector increased in the year to the end of September, new figures show.

The total number of insolvencies recorded during the first nine months of the year was 765, up 3 per cent on the same period a year earlier.

In the third quarter, the number of insolvencies rose by 18 per cent to 255 compared with the equivalent quarter in 2015.

An analysis of industry sectors show the services sector accounted for 29 per cent of all insolvencies, registering 220 for the year to the end of the third quarter. Insolvencies in the construction sector were up 45 per cent to 133.

The hospitality and retail sectors recorded the third and fourth largest number of insolvencies with 84 and 76 respectively.

According to Deloitte, which carried out the analysis, creditors' voluntary liquidations accounted for the majority of insolvencies seen so far this year, with 448 recorded in the first nine months. This marks a 10 per cent decline versus the same period last year.

Receiverships accounted for 274 of the total corporate insolvencies, up by 79 appointments. There were 32 court liquidator appointments in the nine month period and just 11 examinerships.

Geographically, the highest number of corporate insolvencies in the period was recorded in Leinster with two thirds of the total appointments.