Sharp rise in number of insolvent firms

The number of Irish-based firms entering insolvency in the first three months of the year is higher than the full-year total for 2007.

According to information released by Kavanagh Fennell, 365 firms – including related companies - entered insolvency in the first quarter this year compared to 363 for the full-year 2007.

Were this trend to continue Kavanagh Fennell says total insolvencies could reach 1,500 this year, almost double the total of 773 for 2008.

Broken down by sector, the construction sector has seen the highest proportion of firms entering insolvency so far this year with 108, or 30 per cent.

Companies in the hospitality sector, including pubs, restaurants and hotels saw 58 insolvencies (16 per cent) while 57 retail firms were unable to pay their debts.

To date this year there has been 276 creditors’ voluntary liquidation, 32 firms had a court liquidation; 45 entered receivership and 12 had examiners appointed.