Five firms collapsing each day

The number of companies going to the wall has increased by 20 per cent this year to an average of five per day.

A total of 1,829 companies collapsed in the first 11 months of the year leaving behind some €1.15 billion of debt, figures released today by business intelligence firm Vision-net show.

Liquidations account for 73 per cent of the companies closing so far this year, with receiverships (26 per cent) and examinerships (1 per cent) making up the remainder.

Vision-net said there had been a marked increase in the number of companies getting into difficulty because of lower profits and difficulties settling debts.

The data says that 46,931 companies have closed since 2008 with the construction and property sector, which was down 4,000,  being the hardest hit.

However, some 55,539 firms have been incorporated in the same period, showing an average annual growth of 2,152 companies.

A net growth of 2,300 firms has been recorded in the retail sector, despite reduced consumer confidence and spending. The areas of hospitality, IT, transport and communications have also expanded, Vision-net said.

Among the 13,382 companies to begin trading this year, a total 14,628 directors attached to them have past experience but 23,040 others were setting up for the first time.