170 firms going bust each month
A TOTAL of 170 Irish companies went bust every month in 2011, a new report shows.
Latest insolvency figures, published by Vision-net, show that in the first 11 months of 2011, some 1,930 Irish companies went out of business. The figure was a 20pc increase on the amount for the same period in 2010.
In addition to job losses, the companies that failed last year left behind almost €1.2bn in unpaid debt. Some 73pc were liquidations, a further 26pc of the companies went into receivership and 1pc were examinerships.
Predictably, firms in the hospitality and construction sectors were the worst hit. A total of 181 companies in the hospitality sector closed down in the first 11 months of last year, accounting for 9pc of the overall figure.
Despite the harsh business climate, some 14,439 new firms were incorporated over the same period. The number was 5pc more than a year earlier.
The survey's authors say this shows that entrepreneurship remains a "strong trait in the workforce". Christine Cullen, MD of Vision-net, said it had been a very challenging year for the economy, with about five companies collapsing each day.
"Our figures also show that companies in the hospitality and construction sectors have been hardest hit as discretionary spending in the economy slows significantly," Ms Cullen said.