The total number of corporate insolvencies at the end of September stood at 431, according to the latest insolvency statistics published by Deloitte.
This represents only a marginal decrease of 1.8% from the same time last year, when the total number recorded was 439.
The service industry once again recorded the highest number of corporate insolvencies in the third quarter with 154 appointments or 36% of total insolvencies.
The health, fitness and beauty industry featured again prominently with 39 insolvencies recorded during the first three quarters of 2020.
Real estate agencies and property services companies recorded 17 insolvencies, a significant decrease from the same time in 2019, when 29 insolvencies were recorded.
This decline is in line with the reduction in the level of insolvencies recorded within the construction sector, Deloitte said.
The retail sector recorded the second largest number of insolvency appointments in Q3 2020, with 88 companies entering an insolvency process.
Compared to the same time in 2019, the number of insolvencies in this sector ncreased by 40%.
The hospitality sector recorded the third highest level of insolvencies with 70 incidences representing 16% of the total number. This is marginally higher than the level of insolvencies recorded in that sector during the same time last year.
Out of the 70 cases recorded, 54% related to companies operating in the food services sector - restaurants and catering companies.
20 hotels have gone through an insolvency process so far in 2020 and 12 insolvencies were recorded for companies operating as bars or pubs.
Today's figures show that 22% of the insolvencies recorded during the first three quarters of 2020 relate to companies less than five years old.
21% are in the 5-10 years bracket, 32% in the 10-20 years bracket, 9% in the 20-30 years bracket, 8% are in the 30-40 years bracket and 7% are over 40 years old.
Creditors' Voluntary Liquidation (CVL) accounted for the majority of insolvencies, as it has done in previous years. 318 CVLs were recorded up to September, representing 74% of overall insolvency numbers.
Geographically, the highest number of corporate insolvencies in the period was recorded in Leinster, with 71% of total appointments, consistent with the same timelast year.
Munster had 17% of appointments, Connacht had 7% and Ulster 5%.
David Van Dessel, a Partner at Deloitte, said that state-backed initiatives to support struggling companies affected by the Covid-19 crisis, as well as creditor forbearance, including forbearance from the banking sector, have played a major part in preventing an early surge in corporate insolvencies.
But he said it is widely accepted that the Covid-19 crisis will extend into 2021 and ultimately perhaps beyond the limits of creditor forbearance and state supports.
"In view of this, the advice for company directors is to remain alert to the financial position of their companies and to ensure they are ready to initiate a timely debt restructuring strategy when faced with the prospect of insolvency," Mr Van Dessel said.
