Alarming rate of insolvent companies.

johnjoeclock

I haven't seen much coverage of this in the media, but given the changes to TWSS that are coming up tomorrow I decided to try find out how companies are doing, specifically smaller Irish companies.

It really does not look good and this was with the current level of support from the government. The support will be reducing by tomorrow.

As with all discussions you should present the data. Here is a list of companies that have become insolvent, meeting of creditors or ceased trading.

https://www.businessbarometer.ie/company-insolvency-list


That list is only for the current week end. If you think the above website is a load of alarmist bull**** then take one of the company numbers from the list and go over to https://cro.ie and pull their tax filings.


For example the first company in the insolvency list.


https://search.cro.ie/company/ListSubDocs.aspx?id=312327&type=C


They haven't filed their return for 2019 as they have had to cease trading.



I have seen many people in other threads argue that we are not looking at a recession of 2008 levels as that was due to bad lending and inflation of the property market.

That may be true but just because the cause is different doesn't mean that the effect will be. If they could access 0% interest loans why would they become insolvent instead of trying to tough it out and keep their business going.


I am interested to read others views on this and maybe hear from someone with a better view into commercial rents and property. Did the laws which were implemented for residential rentals/primary residences apply/help in anyway for commercial properties?

suicide_circus

Every insolvency is a life saved!

kalych

I fear the issue is less about government supports and more about shifting consumer behaviour. Businesses unable to adjust will become insolvent.

We can't force people to spend money or force people not to spend money online after they discovered the convenience of it during the lockdown. Propping up these businesses in the face of shifting consumer behaviour is not a good idea either, as it's just an endless pit to throw money into.

Government should partner with a provider to make businesses accessing e-commerce resources as easy as possible and generally future-proofing rather than blunt wage subsidy.

Economists rightly point out that Covid hasn't so much changed the dynamic for the businesses but rather accelerated issues already present, such as the move online and reduction in competition due to large monopolist like Amazon.

Sorry, I can't offer much of a solution, just my admittedly amateurish observations.

johnjoeclock

> Government should partner with a provider to make businesses accessing e-commerce resources as easy as possible and generally future-proofing rather than blunt wage subsidy.

Yeah I agree with this, it also highlights that a lot businesses run on very tight margins and or were previously in debt before this whole pandemic kicked off.

Muahahaha

kalych wrote: »

I fear the issue is less about government supports and more about shifting consumer behaviour. Businesses unable to adjust will become insolvent.

We can't force people to spend money or force people not to spend money online after they discovered the convenience of it during the lockdown. Propping up these businesses in the face of shifting consumer behaviour is not a good idea either, as it's just an endless pit to throw money into.

Government should partner with a provider to make businesses accessing e-commerce resources as easy as possible and generally future-proofing rather than blunt wage subsidy.

Economists rightly point out that Covid hasn't so much changed the dynamic for the businesses but rather accelerated issues already present, such as the move online and reduction in competition due to large monopolist like Amazon.

Sorry, I can't offer much of a solution, just my admittedly amateurish observations.

Would agree with shifting consumer behaviour being a factor.

On the e-commerce thing I know local enterprise boards can give small businesses grants for around a thousand euro to get their business online, you see web developers advertising this scheme in the local free newspapers. But I have also read that take up of it has always been slow, there seems to be a reluctance for small Irish businesses to go online.

Indeed I read an article a few years back saying we are far behind other EU countries when it comes to small businesses being online. Would imagine that is a factor in some insolvencies because when Covid came along the tide went out for those who weren't already online and they were at an immediate significant disadvantage to those who were.