Sharp rise in insolvencies predicted in Midlands

A midlands firm hosting a conference in Athlone next month on running a business in the downturn has predicted a sharp rise in insolvencies in the coming year. FGS, based in Longford, has advised Westmeath businesses facing cashflow problems to reach out early and seek help in order to protect their business. It has seen a dramatic increase in the number of clients seeking assistance as a direct result of the current economic downturn. There were seven registered insolvencies in Westmeath up to the end of September this year - with double predicted for next year. Several counties in this area have seen a growth in such company closures, there were six in Leitrim, nine in Offaly, five in Cavan, and eighteen in County Meath. The majority of businesses going to the wall are in the construction and engineering sector, with the leisure sector also experiencing difficulties. A half-day conference in Athlone"s Hodson Bay Hotel on December 2 on the issue will offer advice to people and will also hear the views of the Gerry Harrahill, the Collector General with the Revenue Commissioners. The conference is expected to hear at first hand the view of Revenue as more vigorous debt collection methods are being pursued. As well as hearing from the Collector General, the conference will also be addressed by Barry O"Neill head of insolvency services with Eugene F Collins solicitors, Dublin. Mr O"Neill, a highly-respected practitioner, will speak about the personal insolvency issues for individuals. Bank credit has tightened in the current downturn and firms experiencing cashflow problems are being more closely monitored by banks. To give an insight into how they operate, Paul Morgan of Ulster Bank"s Business Centre in Mullingar, will offer advice on dealing with banks in challenging times. The speakers will give an interesting and informative insight into the approach taken by various sectors to the growing economic downturn. Declan Taite, who heads FGS" corporate recovery and restructuring services, will explain how the liquidations, receivership and examinership processes from the point of view of both the companies and their directors. The key message from the conference will be taking action early. Michael Keenan from the FGS Longford office says taking early action is key to business survival. 'Our experience shows that taking an early approach to problems gives you a greater chance to help your business survive. The reality is that most businesses are suffering as a result of the current downturn.' The conference is aimed not only at business owners and their advisers, but also to directors and individuals. "Controlling your Business in a Downturn" takes place from 3.30pm to 6.30pm on Tuesday December 2nd in the Hodson Bay Hotel. To register for the conference call FGS Longford on 043 3341900 or email lorraine.harrington@fgspartnership.com.