Vision-net, a companies information website, has said that figures show almost 170 companies a month shutdown in the first eleven months of 2011, leaving behind €1.2bn in debts.According to Vision-net, 1,930 Irish companies failed in the months from January to December – up 20% on the same time during the previous period.
Of these, liquidations accounted for 73%, receiverships accounted for 26% and examinerships accounted for 1%. On average, five companies were declared insolvent every day in 2011.
Companies in the hotel and restaurant sector were hardest hit by the recession. Of 5,000 companies analysed in the hospitality sector, 3,401 – or just over 60% – were deemed high risk.
Vision-net says that 181 companies in the hospitality sector closed, accounting for about 9% of all business failures.
In the motor trade, just less than half of the companies surveyed were struggling to stay solvent while, in the wholesale and retail sector, 5,522 companies of the 10,850 analysed were deemed to be high-risk.
Christine Cullen, managing director of Vision-net, said ”Consumer sentiment remains weak as unemployment rises and salaries drop against continuing turbulence in the global economy,” she added.
With High rents and commercial rates continuing to go unabated, its seems that 2012 will continue this distressing trend.