Despite recording the second highest number of corporate insolvencies in 2015, the Retail sector continues to show signs of recovery, as the total number of insolvencies within the industry fell for the third year in a row.
The retail industry in Ireland saw 154 corporate insolvencies in 2015, down from 162 in 2014 and 190 in 2015, according to the latest report fromInsolvency Journal.
Across the board, the number of corporate insolvencies declined by 10% to 1,049 in 2015, an encouraging sign according to David Van Dessel, partner in Deloitte Restructuring Services; "It is encouraging to see the number of insolvencies continues to decline and is an indication that the improving economy continues to be felt on the ground by companies."
The service sector experienced the most insolvencies, with a total of 200, followed by the retail sector (154), and the hospitality industry (109). The majority of insolvencies (65%) occurred in Leinster, with 21% in Munster, 9% in Connaught and 5% in Ulster.
Commenting on the outlook for 2016 Van Dessel said; In 2016, we anticipate that the total number of corporate insolvencies will continue to decrease. Furthermore, it is expected that there will finally be an increase in the number of companies opting to restructure by way of examinership, particularly as the general improvement in the domestic economy should mean that more businesses will have a reasonable prospect of survival."
However, Van Dessel forecasts a difficult year for the retail industry on the back of changing consumer habits and the increasing prevalence of online retailers. "Despite the overall improvements in the economy, the retail sector is likely to continue to experience difficulties as a result of sector-specific factors, such as changes in consumer purchasing habits, as shoppers continue to seek more and more value, in addition to the growth of online retailers," he said.
© 2016 - Checkout Magazine by Niall Swan