ALMOST 200 Irish companies collapsed in the first three months of the year.

According to figures from Stubbs Gazette publisher Dun & Bradstreet, 194 firms went into liquidation in the first quarter, compared to 165 companies which went bust in the same period last year.

The number of liquidations is increasing despite the strong economic performance because the level of start ups has increased dramatically in recent years, according to Dun & Bradstreet. Last year, a record 16,265 businesses were set up in the Republic.

A random sample showed that 43 per cent of liquidated companies had been in business for less than five years. Services was the sector hardest hit.