Examinership saves 196 SME jobs in Q1

The examinership process saved 196 jobs at troubled SMEs in the first quarter of this year, according to a new survey.

The latest results from the quarterly SME Examinership Index, compiled by accountancy firm Hughes Blake, shows a 56 per cent increase in the number of jobs saved by examinership, when compared with the first quarter of 2012.

Four companies successfully exited the examinership process in the period, demonstrating it is possible for businesses in difficulty to survive with the support of Ireland's formal recovery mechanism.

These were confectionery retailer The Sweet Factory, Tougher Oil Distributors, digital trade solutions company Trade Facilitate and Wexford Viking Glass.

Other companies that are currently operating under examinership include the Muckross Park Hotel in Co Kerry and the Sunday Business Post.

Hughes Blake managing partner Neil Hughes said the growing numbers of retailers entering examinership highlighted the underlying weakness in the economy with consumer confidence and demand remaining low.

“While there are some early signs of economic improvement, for many businesses, day to day trade continues to be challenging and this is putting significant pressure on the cash flow and operations of companies all across the country.”

He said the examinership process can provide a “lifeline” for companies in difficulty, saving jobs, facilitating firms’ long-term survival and securing payments for creditors.