Recent reports show how important it is that Northern Irish businesses proactively protect themselves from the possible fallout of other firms becoming insolvent, one of Northern Ireland’s top commercial lawyers has warned.
The warning came from Matthew Howse, Partner, Dispute Resolution & Litigation, at Eversheds Sutherland after a recent report from Creditsafe showed that there have been more insolvencies in Northern Ireland than any other part of the UK since 2016. The Belfast based lawyer warned that all NI businesses, regardless of what sector they operate in or how big they are, should take measures to protect themselves.
Insolvency occurs when a business can no longer meet its financial obligations to its creditors, this can have major ramifications for the firms creditors and any businesses in the insolvent firms supply chain.
Matthew Howse, Partner, Dispute Resolution & Litigation, at Eversheds Sutherland said: “This recent report which shows there have been more insolvencies in Northern Ireland than any other part of the UK since 2016 strikes a note of caution for the Northern Irish economy, despite other recent more positive news stories. A firm entering an insolvency process can obviously have a significant impact on that firms immediate suppliers and creditors but it can also have a potentially contagious effect on the wider supply chain, with potential knock-on impacts for business confidence and investment.”
“There are a number of factors behind this increase in insolvencies, including the economic challenges of Brexit. This trend has affected businesses in a wide range of sectors from retail to construction, including a number of high-profile cases. The important thing for all businesses in Northern Ireland, regardless of what sector they’re in or what size of company they are, is that they take proactive measures to prepare themselves in case they are affected by a firm in their supply line becoming insolvent.”