The service sector tops the lists of bankruptcies

  • The service sector tops the lists of bankruptcies
    Independent.t. E.
    The share of the construction sector accounted for one out of five bankruptcies in Ireland in the six months to June 30.
    https://www.independent.ie/business/irish/services-sector-tops-lists-of-insolvencies-37180141.html
    https://www.independent.ie/business/article37179901.ece/0d5a5/AUTOCROP/h342/2018-04-15_bus_40050074_I1.JPG

  • Email

The share of the construction sector accounted for one out of five bankruptcies in Ireland in the six months to June 30.

In total, there were 435 of bankruptcies in the first half of 2018, reduced by 4 compared to the same period last year, according to consulting firm Deloitte.

Most of the companies that were declared insolvent has been found in the services sector, with a total of 96 insolvency. In the construction sector was 85.

While the number of bankruptcies reported continues to fall, not all positive.

David van Dessel, partner at Deloitte, warned that there could be a number of zombie companies that, in their efforts to recover from the economic downturn, but will fail, and startups that are not dominated given the high incidence of failures in this area.

“The pace of bankruptcies in Ireland continue to fall in 2018, which is encouraging, however, it should be noted that the rate of decline is lower than we saw in the first quarter of this year – 14pc hole saw and with the same period last year, where the number of bankruptcies was 11pc,” Mr. Wang said Dessel.

In addition, Deloitte noticed a trend where existing companies, in their attempts to expand in the improving economic conditions, have devoted limited funding of expansion plans, due to what Mr. van Dessel described as “on the background of a restrictive credit line.”

“These expansion plans may not provide the required return on investment, leaving these companies to face a higher than usual risk of failure.”

Online Business Classes