THE number of businesses closing down in the north is on the rise, The Irish News can reveal.
In the year to January 31, a total of 231 struggling companies went in to liquidation as a result of financial difficulties.
This represents an increase of nearly 10 per cent from the previous year, and a jump of more than 20 per cent compared to the same period three years ago.
And creditors who were owed money by firms unable to pay their debts filed more than 500 bankruptcy petitions with the courts over the same period. This is a rise of some 6 per cent compared to the previous 12 months.
Over the last five years, there have been a total of 3,324 bankruptcy petitions by creditors and 1,296 liquidations by limited companies.
These figures were disclosed to the The Irish News via a freedom of information request.
Following June’s shock referendum vote, the climate of uncertainty has cast a cloud over the future of many businesses in Northern Ireland, resulting in several high-profile companies closing their doors and putting hundreds of their employees out of work.
In October, clothing chain Exhibit closed its doors, resulting in the loss of 100 jobs across its 14 stores in the north.
Last month, Lisburn-based builders Tal and Derry aerospace firm Schivo NI both announced market pressures had forced them into administration, putting a combined 133 jobs at risk.
Just days later mechanical installation firm Maurice Stevenson followed suit and called in the administrators, with 33 jobs facing the cut. The company had been in business for nearly a century.
At the beginning of this week, The Irish revealed that Belfast’s California Coffee had also shut its doors, with the loss of 40 positions.
Aside from the departure from the single market, another one of the main concerns surrounding Brexit for the Northern Ireland business community is the possibility of a hard border being erected between the north and south, which could disrupt cross-border trade.
Speaking at their annual dinner last week Liam Lynch, president of Ireland-wide business body Chartered Accountants Ireland, warned that such a border "could destroy companies" across the entire region.
Ann McGregor, chief executive of the Northern Ireland Chamber of Commerce and Industry said it was "disappointing" to see the number of liquidations and bankruptcies increase.
"NI Chamber senses from its Quarterly Economic Survey and discussion with members that some businesses are struggling and current uncertainty isn't helping," she added.
"However, the overall number of businesses in Northern Ireland did rise by almost 2,000 in 2016 and our business growth rate was higher than both Scotland and Wales.
"The latest QES suggests that the Northern Ireland economy is growing although sentiment around prospects for the economy is mixed."
