New analysis from PwC shows that for every 1% increase in unemployment in Ireland, an additional 250 insolvencies can be expected.
Ireland’s corporate insolvency landscape remained strikingly stable in Q1 2026, according to PwC’s latest Insolvency Barometer.
The Barometer points to 212 insolvencies recorded in the first quarter of this year. This is broadly in line with the recent quarterly average of approximately 205 since the start of 2023 and continues the trend of remarkably stable insolvency numbers over the past three years.
“We are seeing insolvency levels in Ireland to be remarkably steady and is reflective of a continuing robust economy with a strong fiscal position”
PwC says Irish companies have shown impressive resilience in the face of continuous economic challenges illustrated by these consistent insolvency levels.
However, this stability will be challenged as new cost pressures unfold resulting from the crisis in the Middle East and wider geopolitical uncertainty.
Trend of ‘impressive resilience’
“We are seeing insolvency levels in Ireland to be remarkably steady and is reflective of a continuing robust economy with a strong fiscal position,” said Ken Tyrrell, Business Recovery Partner, PwC Ireland.
“Irish companies have shown impressive resilience despite continuous economic challenges. Hopefully, this stability can continue as new cost pressures unfold resulting from the crisis in the Middle East and wider geopolitical uncertainty.”
“At the same time, the high cost of doing business over the last few years is still impacting some SMEs, for example, the retail sector which is still showing high numbers of insolvencies. On the other hand, insolvency levels for the hospitality sector remain consistent since the start of 2023.
PwC’s latest analysis shows that the insolvency rate at the end of Q1 2026 is 27 per 10,000 companies, representing approximately 870 insolvencies per annum.
This is far below the 21-year average of 49 per 10,000 businesses (approximately 1,575 insolvencies per annum). It is also much less than the previous peak of 109 insolvencies per 10,000 businesses recorded in 2012 (over 3,500 insolvencies per annum).
When it comes to specific sectors, retail recorded the highest level of insolvencies for Q1 of 2026 with 50 insolvencies, an increase of almost 50% from the previous quarter ended December 2025. The sector accounted for almost a quarter of all insolvencies for the period. #
The retail sector has consistently been one of the hardest hit sectors in terms of absolute insolvency numbers. However, with a current insolvency rate of 26 per 10,000, the sector still sits just below the current insolvency rate for Ireland of 27 per 10,000 due to the large number of businesses operating in the sector.
PwC says that 19 of the 50 retail insolvencies related to “Health, Beauty and Wellness” which would be mostly small, owner operated businesses including pharmacies and hair-related businesses.
There were 32 insolvencies recorded in the hospitality sector for Q1 2026, broadly in line with the sector’s quarterly average of 35 insolvencies since the start of 2023. Only six related to accommodation-based companies illustrating the differing performance of accommodation compared to food and beverage.
The hospitality sector has an insolvency rate of 62 per 10,000 – more than double the current rate for Ireland, illustrating that the sector is recording a high number of casualties relative to the number of companies operating in the sector.
Rescue activity
There were only 12 corporate receivership appointments recorded in the first quarter of 2026. This represents a sharp decrease of over 60% when compared with the preceding Q4 of 2025 (31) and with the first quarter of 2025 (34), suggesting an increase in lender patience and possible consideration being made for the current economic challenges facing companies.
24 liquidator appointments were made by the Courts in the first three months of 2026, largely in line with the quarterly average in 2025 of 29 appointments. With the office of the Revenue Commissioners acting as petitioner in 13 of the 24 appointments, the pattern of the Commissioners’ debt recovery efforts identified throughout 2025 appears to be continuing into 2026.
There were six examinership appointments and 7 SCARP process advisor appointments in Q1 2026, representing a modest increase for both processes on the preceding quarter, when 4 examinerships and 4 SCARPs were recorded in Q4 2025.
Although there has been a slight uptick in Q1 2026, the SCARP rescue process remains significantly underutilised with ongoing debate within the insolvency sector regarding its effectiveness and ultimate success as a restructuring tool for SMEs. Examinership, on the other hand, has seen a significant uptick in the last two years, with the process typically providing a greater level of court protection while a rescue plan is formulated and, in appropriate cases, can be a stronger alternative to the SCARP process.
Unemployment links with insolvency
PwC’s analysis in 2025 revealed that there is historically an almost perfect statistical correlation between the Irish unemployment rate and the Irish insolvency rate per 10,000 companies.
The analysis demonstrates that a 1% increase in the unemployment rate in Ireland correlates to a corresponding increase in the insolvency rate.
Statistically this means for every sustained 1% increase in the unemployment rate, PwC expects to see an additional 250 insolvencies. The current seasonally adjusted unemployment rate is 4.6% as of February 2026, which is estimated to fluctuate slightly but not breach 5% in 2026. If this forecast is to increase, PwC expects to see an increase in insolvency levels during 2026.
The average lifespan of companies declaring insolvency in Q1 2026 was just under 14 years, up from just under 12 years for 2025. The shortest-lived company was less than a year old, while the longest lifespan was almost 54 years.
The geographic concentration of insolvencies in Dublin continues, with 110 insolvencies recorded this quarter. Cork and Kildare were the second and third highest, with 22 and 14 respectively.
“We will closely monitor insolvency levels throughout 2026 and in the light of unfolding international events,” Tyrell said.
“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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