Galway insolvencies third highest in the country

Date Published: 28-Dec-2011

BY ENDA CUNNINGHAM

A total of 89 companies in Galway City and County were declared insolvent in the first eleven months of 2011 – the third highest level in the country – according to statistics compiled for the Connacht Tribune.

The figures, which are the most up-to-date available, cover the eleven months to the end of November and show there were a total of 89 insolvencies recorded in Galway – up slightly from the 86 recorded in the same period in 2010.

The total figure includes court liquidations, creditors’ voluntary liquidations, receiverships and examinerships.

The statistics were provided to the Connacht Tribune by insolvencyjournal.ie which is owned by Kavanagh Fennell, the country’s biggest specialist insolvency practice.

And insolvency experts have warned that troubled businesses are having an increasing knock-on effect on other companies.

One insolvency specialist told the Connacht Tribune: “If an insolvent company can’t meet its debts to creditors – whether they are individuals or companies – they will then find themselves in trouble.

“It’s the domino effect, and it can spread alarmingly quickly. We’ve already seen an increase in business insolvencies in Galway this year on last year,” he said.

Comparative insolvency figures for other counties for the first eleven months of in 2011 show Dublin had 576 (up from 564); Cork had 126 (unchanged); Limerick had 67 (up from 59); Kildare has 68 (up from 65); Meath had 62 (up from 57) and Wexford 58 (up from 46).