Examinership helped save 1,250 jobs this year

Close to 1,250 jobs were saved in SMEs through the examinership corporate recovery process this year, according to new figures.

A study from chartered accountants Hughes Blake indicates that 1,243 jobs were retained as a result of the process, up 49 per cent on last year.

A total of 154 jobs were saved during the final quarter of 2014 alone, the research shows.

Examinership is a corporate rescue mechanism that allows insolvent companies that have a reasonable prospect of survival to seek court protection from creditors.

The success rate of examinerships - where the company moves through the process and emerges on the other side to continue to trade - stands high at 90 per cent for 2014.

Among the companies to emerge from examinership this year was the sports retail chain Elverys, which accounted for 654 of the 794 jobs jobs saved during the second quarter.

Circuit Court examinership cases involving Fossett Brothers Circus and roofing consultants Henry McGinley and Sons are currently underway in the Dublin Circuit and Donegal Circuit courts.

"This year the examinership process was introduced in the Circuit Court for the first time in a bid to make it more accessible for small and medium businesses based outside the capital. That factor has contributed to the increase in the number of jobs saved through examinership this year," said Neil Hughes, managing partner at Hughes Blake.

“The introduction of Circuit Court examinership has received a very favourable reaction on the ground. Local business owners have told us that the removal of the need to travel to Dublin has made examinership a possibility where they otherwise would have faced receivership or liquidation. It is also associated with lower costs and with a reduced requirement for the input of barristers, and we have found that the reduction in cost is something struggling SMEs have welcomed with open arms,” said he added.