This represents an 81% increase when compared with only 31 insolvencies in the ‘hospitality sector’ in 2021 according to the latest insolvency statistics published by Deloitte.
In excess of 500 corporate insolvencies have been recorded in Ireland in 2022 to date. This too represents a substantial increase of over 29% from 2021, when the total number of corporate insolvencies recorded was 401.
Commenting on the latest figures, David Van Dessel, Financial Advisory Partner at Deloitte, said, “Some sectors have been more exposed than others and we can see that in hospitality, for example. While Government supports gave a lifeline to many businesses in the industry during the Covid era, the changed patterns of consumer behaviour, escalating energy costs and difficulties in recruiting and retaining staff meant that some could no longer survive and the only option was to shut their doors.”
He added, “Given the economic headwinds ahead with rising inflation, increased energy costs and higher interest rates, it’s anticipated that insolvency activity will likely surpass pre-pandemic activity over the next 12 to 24 months.”