Business

Thirteen companies go under during April

Thirteen companies in Northern Ireland went insolvent in April according to official government data
Gary McDonald Business Editor

IT was unlucky for 13 companies in Northern Ireland in April as they became insolvent.

But the scale of company collapses - made up of six compulsory liquidations, four CVLs, two administrations and one CVA - is nothing like the scale of previous years.

Although the figure is two and a half times that of the same month last year, it is 32 per cent lower than April 2019.

For companies though, the situation is likely to get worse in the coming months, with many facing reduced turnover, unable to compete, reducing personnel, scaling back on investment plans and exiting markets, which seems certain to force many into insolvency if they're unable to overcome these challenges.

Allied to that, many firms accumulated huge debt to stay afloat during the pandemic, and BounceBack and CIBLS loan repayments are now due to be paid back, putting a significant drain on working capital.

On an individual basis, there were 162 insolvencies in Northern Ireland last month, consisting of 144 IVAs, 14 DROs and four bankruptcies.

The figure was 28 per cent lower than in April 2021, and 51 per cent down on April 2019.

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