Company liquidations in 2005 fall to record low
The number of company liquidations in Ireland fell to a new all time low of 313 in 2005, compared with 329 for 2004, according to figures released today by global information solutions company Experian.
The number of companies entering receivership was also down, to 14 in 2005 from 16 in 2004, while the number of petitions to wind up companies almost doubled, from 36 in 2004 to 61 in 2005.
Commenting on the figures, which are complied by Experian Ireland’s business information division, Liam Reddy, director, said: “These figures represent a strong indicator that the Irish economy continues to be buoyant. Current indications are that the number of liquidations will fall again in 2006.
“Having examined the circumstances relating to the 313 liquidations in 2005, the underlying feature in most cases was that the companies were undercapitalised. Consequently it is not expected that a dividend will be paid to unsecured creditors in the vast majority of cases.”
According to the figures published by Experian, almost one third of the 2005 insolvencies (97) came from the construction sector.
The other sector which experienced difficulty in 2005 was the catering/food/licensed premises trades, with 44 liquidations.
