Irish corporate insolvencies remain stable as creditor enforcement actions rise sharply.
Corporate insolvencies in Ireland have remained largely stable in the first half of 2025, with 407 cases recorded compared to 412 in the same period last year, representing a marginal 1% decrease.
However, the nature of these insolvencies is shifting significantly, with creditor-led enforcement actions rising sharply across multiple categories.
“Hospitality continues to experience a high number of insolvencies, despite the drop in 2025 so far”
The figures, released by Deloitte Ireland, reveal a complex picture of corporate distress that goes beyond simple headline numbers. Court liquidations more than doubled from 19 to 42 cases, while corporate receivership appointments increased by 37% from 52 to 71 cases.
Revenue played a prominent role in court liquidations, petitioning for 27 out of 42 cases (64%) in the first half of 2025, compared to just 6 out of 19 cases (32%) in the same period last year. This increase stems from companies’ inability to meet phased payment agreements established under the Covid-19 debt warehousing programme.
SCARP and deliver
“Court appointed Liquidation activity arising from unresolved debts are up by 121% with Revenue petitioning in 64% of these appointments,” said James Anderson, Turnaround & Restructuring partner at Deloitte Ireland. “Corporate Receiverships have increased by 37% with significant activity by alternative lenders enforcing on real estate backed loans which have defaulted or matured without resolution.”
The rise in receivership appointments is primarily attributed to alternative lenders taking action on defaulted or matured real estate-backed loans. This trend reflects broader challenges in the commercial property and lending sectors.
Formal corporate restructuring activity showed positive momentum, with Small Company Administrative Rescue Processes (SCARP) and examinership appointments increasing by 56% year-on-year. SCARP cases doubled from seven to 14, though Anderson noted that awareness of this rescue mechanism remains disappointingly low despite its success rate exceeding 70%.
“SCARP has proven to be a successful process that saves companies and jobs. It is disappointing that awareness remains low despite a success rate of over 70%. It is crucial that an awareness campaign is invested in, so more people are aware of it,” Anderson explained.
Since SCARP’s introduction in December 2021, there have been 99 appointments: 22 in 2022, 33 in 2023, 30 in 2024, and 14 to date in 2025. Despite its effectiveness, SCARP represents just 4% of all insolvencies during this period.
Company-led closures by sector
Company-led closures through Creditors’ Voluntary Liquidation decreased by 18%, from 323 cases in the first half of 2024 to 266 in 2025. Anderson views this trend positively, noting: “Company led closures are down whilst Company led restructuring has increased, hopefully this will continue in the second part of the year.”
The hospitality sector continues to face significant challenges, recording 66 insolvencies in the first half of 2025. While this represents a 14% decrease from the 77 cases recorded in the same period last year, hospitality maintains the highest insolvency rate of any industry when services are divided into subsectors.
Restaurants are disproportionately affected within the hospitality sector, struggling with legacy debt issues, staff recruitment and retention difficulties, and Ireland’s position as having the most expensive energy costs in Europe.
“Hospitality continues to experience a high number of insolvencies, despite the drop in 2025 so far,” Anderson observed. “There are signals that the VAT rate may be cut to 9% in the upcoming Government budget, but this is unlikely to result in a change in insolvency rates in this sector as the challenges they face include legacy debt issues, difficulty attracting and retaining staff, and high costs, in particular for energy.”
SMEs dominate insolvency levels
Small and medium enterprises continue to dominate insolvency statistics, representing 98.5% of all cases. This proportion underscores the ongoing challenges facing Ireland’s SME sector.
Geographically, Leinster recorded the highest number of insolvencies with 301 cases, as expected given its economic concentration. However, Munster experienced a notable 50% increase, rising from 46 cases in the first half of 2024 to 69 in 2025. This increase was predominantly driven by Cork, where insolvencies doubled from 21 to 42.
Looking ahead, Anderson cautioned about potential challenges for the remainder of 2025. “Even though insolvency numbers year to date are similar to 2024 levels, with ongoing geopolitical and trade tension, there are significant headwinds to consider for the rest of the year,” he said.
The data reveals a corporate landscape where traditional voluntary wind-downs are giving way to more formal restructuring attempts and creditor-driven enforcement actions. This shift suggests that while overall insolvency numbers remain stable, the underlying dynamics of corporate distress are evolving significantly.
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