Guide to Insolvency launched by Chartered Accountants Ireland and Kavanagh Fennell

02 October 2009

Chartered Accountants Ireland, in association with Kavanagh Fennell today launches ‘A Practical Guide to Insolvency’ written by Kavanagh Fennell and published by Chartered Accountants Ireland, a short, easily digestible book explaining the complexities of insolvency in Ireland for business managers, accountants, solicitors, bankers and other professionals.

The launch coincides with research published today by Kavanagh Fennell that reveals a sharp increase in insolvencies since January. The latest update from Kavanagh Fennell’s online insolvency publication, InsolvencyJournal.ie, shows that there have been 1,094 insolvencies in the first nine months of this year with the firm predicting that this will increase to 1,400 by year end.

The number of insolvencies for the first nine months of the year represents a 127% increase over the same period in 2008 during which time 480 insolvencies were reported. When compared to the same period in 2007, it represents a fourfold increase with 250 insolvencies recorded.

The findings show that from January to September construction has been the most severely impacted sector as a result of the economic downturn with 324 insolvencies recorded. This is followed by the retail sector with 165 insolvencies and the hospitality sector with 129 reflecting the impact of declining consumer spending. A high number of insolvencies have also been reported in the manufacturing sector (90) and the motor industry (47).

The number of Irish small companies experiencing difficulties in trading is well documented. However, according to Kavanagh Fennell and Chartered Accountants Ireland, many managers and directors have only a scant knowledge of the options available to them. A Practical Guide to Insolvency addresses this knowledge gap in a simple, accessible style that will give every business person the key information and will lay out the alternatives available to business. In a first of its kind in Ireland, the Guide explains the various types of insolvencies in simple language to assist Business Managers, Bankers, Financial Controllers, Credit Managers and Directors of businesses in financial difficulty – anyone in fact who is affected by a company in financial difficulty.

A Practical Guide to Insolvency by Kavanagh Fennell is priced at €35.00, and is available from good bookstores or direct from Chartered Accountant Ireland at www.charteredaccountants.ie/General/Shop/Books1/A-Practical-Guide-to-Insolvency/