Number of firms being wound up rises

The number of companies going into liquidation in 2007 saw a sharp rise during the final months of 2007, a new report has shown.

According to information services firm Experian, 80 firms went into liquidation between October and December, a significant increase on previous quarters.

In comparison, 61 firms were wound up in the first quarter, rising to 63 and 69 in the second and third quarter respectively.

"Historically, there is a slowdown in liquidation numbers in the final quarter of the year," said Liam Reddy, director of Experian Ireland's business information division. "However, this final quarter increase is a direct reflection of the changing and challenging business environment experienced in the later part of 2007."

Mr Reddy said the construction and allied trades sector was particularly hard hit during the later months of 2007, as difficulties in the housing market affected the sector. This sector accounted for 40 per cent of all liquidations. In total, fewer companies went into liquidation during 2007 than in the previous year - 273 compared to 280.

However, a record number of companies sought examinership during 2007, with 25 firms seeking the help of an examiner. This was the highest figure in 10 years, and a three-fold increase on 2006. The number of firms going into receivership in 2007 fell slightly, from 16 in 2006 to 15.

The tough conditions are expected to continue in 2008, with Experian predicting a rise in liquidations.