Over 1,500 companies were declared insolvent during 2010 according to the statistics complied by insolvencyjournal.ie.

As the recession continues to hit Irish companies hard the increase of over 8% on the 2009 figure is very much in line with insolvencyjournal.ie predictions at the start of the year.

Commenting on the figures, Ken Fennell, a partner with kavanaghfennell who compile the data said: "2010 saw no let up in the number of businesses becoming insolvent, although the increase on the 2009 figure is not as bad as some had predicted."

Construction was the hardest hit sector with 472 Companies or 30% of the total going bust during 2010. Some high profile construction failures during the year included the Fleming Group, Pierse Contracting and McInerney Group.

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The services sector was the next hardest hit with a total of 279 insolvencies accounting for over 18% of the total, the majority of these companies would be connected to or auxiliary to the construction industry such as architects, quantity surveyors and other construction related service providers.

The hospitality sector also suffered badly during 2010 with 194 Companies going bust during the year.

Retail insolvencies account for 177 of the total, however these figures only include corporate insolvencies and do not take account of sole traders or partnership failures, of which there are no official statistics available.

Mr Fennell said: "2011 will again be a very difficult year for Irish businesses and particularly the retail and hospitality sectors will see a large number of failures."

However he also believes the overall number of insolvencies has probably peeked and does not expect total company failures in 2011 to be above the 2010 figures.

(CD)