Irish insolvency levels remain stable amid economic resilience.
Insolvency levels in the Republic of Ireland have remained consistent and well below historical averages over the past three years, according to PwC’s latest Insolvency Barometer.
The report, which analyses insolvency trends for the third quarter of 2025, highlights the continued resilience of Irish businesses despite domestic pressures and global uncertainties.
“Businesses should focus on their core strategies and cost bases while actively managing their working capital and cash positions”
PwC recorded 197 insolvencies in Q3 2025, a 22% decline from the 252 cases in Q2. This brings the year-to-date total to 641, closely aligned with the 660 cases recorded during the same period in 2024. The firm forecasts approximately 850 insolvencies for the full year, marginally below the 868 recorded in 2024.
Robust economy
Ken Tyrrell, Business Recovery partner at PwC Ireland, said: “Ahead of Budget 2026 next week, it is good news to see that insolvency levels in the Republic of Ireland have remained consistent at relatively low levels over the last three years which largely reflects robust economic performance.”
The current annual insolvency rate stands at 29 per 10,000 businesses, equating to around 865 cases per year. This is significantly below the 20-year average of 50 per 10,000 businesses and far from the peak of 109 per 10,000 businesses seen in 2012, when over 3,000 insolvencies were recorded.
Retail continues to account for the highest absolute number of insolvencies, though the sector has seen notable improvement.
Retail insolvencies fell to 35 in Q3 2025 from 56 in Q2, bringing the year-to-date total to 116 – nearly 30% lower than the 161 recorded during the same period last year. Despite this, the sector’s insolvency rate of 18 per 10,000 businesses remains below the national average.
Hospitality is showing signs of stabilisation, with insolvencies declining for the third consecutive quarter. The sector recorded 32 cases in Q3, down from 40 in Q2. PwC attributes this trend to seasonal recovery, increased tourism, targeted government supports, and business model adaptations.
End of debt warehousing scheme
Court-appointed liquidations remain elevated, with 35 cases in Q3 matching the previous quarter. The total for the first nine months of 2025 stands at 95, more than double the 42 cases recorded during the same period in 2024.
The Revenue Commissioners acted as petitioner in 53 of these cases, reflecting intensified efforts to recover debts following the end of the debt warehousing scheme.
The Small Company Administrative Rescue Process (SCARP) continues to see low uptake, with only 19 appointments year-to-date, down from 22 in 2024. In contrast, examinerships have increased, with 22 companies entering the process this year compared to seven last year.
Receiverships remain muted, accounting for 13% of all insolvencies in 2025. A total of 85 receiverships have been recorded so far, up 9% from 78 in the same period last year. PwC notes that lenders appear to be maintaining a cautious approach to enforcement.
Geographically, Dublin, Cork, and Galway account for nearly 70% of all insolvencies, with Dublin alone responsible for over half. This concentration reflects the higher density of enterprises in urban centres and their exposure to economic fluctuations.
Tyrrell added: “Businesses and consumers continue to deal with a higher cost base driven by domestic and international factors. Businesses should focus on their core strategies and cost bases while actively managing their working capital and cash positions to ensure that they are financially sustainable into the future.”
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