New statistics compiled by InsolvencyJournal.ie this week reveal a significant increase in insolvencies in February. The number of companies that went out of business last month was up by 33 per cent from 110 in January to 146 in February with approximately five businesses per day going bust last month.

Commenting on the statistics, Ken Fennell of Kavanagh Fennell, said, “This was the second highest monthly total, second only to December 2009, recorded by InsolvencyJournal.ie since January 2007. If the trend continues, total insolvencies this year could exceed the 1,406 insolvencies recorded in 2009. Dublin was particularly badly affected and accounted for 38 per cent of all insolvencies.”

Leinster was the worse hit region again during February, accounting for 60 per cent of the total number of insolvencies but there was a surge in company failures in Connaught – up from 7 in January to 18 in February.

While the number of insolvencies in the construction industry had been on the decline, hopes for a recovery in the trade seem to be premature. Construction was yet again the worst-affected sector with 47 insolvencies – up 34 per cent on last month suggesting that perhaps the downturn in construction has yet to bottom out.

The effects of the cold snap in January and the associated loss of sales became clear last month with the retail industry particularly badly hit in February. Insolvencies in the sector more than doubled rising from 12 in January to 26 in February while the services and hospitality industries also recorded minor increases in corporate failures.

Manufacturing, however, bucked the downward trend and insolvencies in the sector almost halved –down from 11 in January to six in February.

The motor industry continued to record low numbers of insolvencies with only two company failures in the sector – a sign perhaps that the car scrappage scheme is having an effect on the beleaguered industry.

The number of companies going into receivership also appears to be slowing down with only 17 receivers appointed in February compared to 21 in January. After two consecutive months during which there were no applications for court protection granted by the High Court, three companies – including the Jackie Skelly chain of fitness clubs – entered examinership in February.

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