THE FACTS: Insolvency Figures - Quarter 1 2014
Already this year 9,216 Irish and UK companies have entered insolvency with figures rising by almost 17% from 7,899 compared to the same time in 2013. This is a worrying figure for companies as the knock on effects are felt by the rest of the economy.
Construction was the worst hit industry throughout January and February and this trend follows on from Creditsafe findings that construction companies were the most searched for companies in the first 6 months of 2013.
"Almost 600 companies in Europe go bust every day"
Insolvencies in Europe
Around 200,000 European companies enter insolvency each year meaning on average almost 600 companies go bust every day in Europe. These facts come at the same time as the European Commission announce plans to introduce national procedures to encourage businesses restructure instead of focus on liquidation in order to avoid insolvency.
Some European countries such as Germany are experiencing some better fortunes in terms of insolvency statistics. Germany’s 2013 insolvency figures were recorded at a 16 year low, however predictions are not looking good for 2014 as insolvencies are set to rise.
- 9,216 Irish and UK companies have already entered insolvency this year.
- January recorded 3,097 insolvencies.
- February recorded 3,019 insolvencies.
- March recorded 3,100 insolvencies.
- Comparison to last year’s figures shows almost a 17% increase in insolvencies.
- Construction has been the most impacted industry so far this year.