More than 1,500 companies were declared insolvent last year, according to the latest figures. The businesses most affected by closures were property companies, restaurants, hotels, retail and motor companies.
Accountants Kavanagh Fennell say that while there was no let-up in the number of companies being declared insolvent in 2010, the increase on 2009 was not as high as expected.
The construction sector saw the majority of companies going out of business last year. 472 building firms, 30% of the total, went bust last year. The number of businesses going under included high profile companies Pierse Contracting and Fleming Group.
The services and retail sectors were also badly hit. The hospitality sector saw 194 bars and hotels closing, including the Residence Club, City West Hotel and Killeshin Hotel.
Retail insolvencies accounted for 177 of the total figure, but this figure does not take account of sole traders or partnership failures. Some high street names that went under last year included Hughes and Hughes, Vera Moda and Four Star Pizza.
Leinster accounted for over 65% of all insolvencies, followed by Munster with 21%.
Today's figures also show a hugh increase in the number of receivers being appointed. The banks appointed 225 receivers last year, up from 124 in 2009 and just 57 in 2008. Fennell believes this trend will continue in 2011 as the banks and NAMA try to recover what they can from failing companies.
The number of firms seeking protection from creditors by placing the company into examinership fell dramatically last year. 16 companies went into examinership last year compared to 37 in 2009 - down 57%.
Ken Fennell says the low number of companies entering examinership is a reflection of the difficulty in negotiating a successful path through the process. There were some notable successes, including Aer Arann, Best Seller and Jackie Skelly Fitness.
Meanwhile, business information firm Vision Net says five companies closed every day last year, a decrease of 8% from 2009. Liquidations were also down by 8%, while more than 14,000 new limited companies were incorporation, an increase of 5% from 2009.
