Latest PwC barometer points to resilient business landscape despite rising costs.
Ireland’s corporate insolvency landscape has remained strikingly stable in the first half of 2026, underscoring the resilience of businesses even as cost pressures and global uncertainty persist, according to PwC’s latest Insolvency Barometer.
The report shows that 444 corporate insolvencies were recorded in the six months to the end of June, closely aligned with the 436 cases recorded in the same period last year. A total of 232 insolvencies were reported in the second quarter alone, keeping volumes consistent with recent trends.
“Many businesses are seeing ongoing pressure on margins, leaving them more vulnerable to cashflow challenges”
PwC said this steady performance reflects a longer pattern of stability. Since the beginning of 2023, quarterly insolvency numbers have averaged just over 200, which remains below the long-term average of approximately 250 cases per quarter going back to 2005.
On an annualised basis, the insolvency rate stands at around 27 per 10,000 businesses, equivalent to roughly 900 cases per year. That compares favourably with the 21-year average of 49 per 10,000, and is well below the peak reached during the financial crisis in 2012.
Retail sector under pressure
Beneath the overall stability, sectoral trends highlight diverging fortunes. Retail accounted for the highest number of failures in the first half of the year, with 109 insolvencies recorded. That marks a 35% increase compared with the 81 cases seen in the same period in 2025.
As a result, retail businesses now account for almost one in four insolvencies nationwide. The figures point to continued pressure on consumer-facing businesses as they grapple with cost increases and cautious spending patterns.
By contrast, the hospitality sector showed signs of improvement. Insolvencies in the sector fell by 26% year on year to 60 cases in the first half, down from 81 in 2025. PwC noted that this may reflect a degree of stabilisation following a prolonged period of disruption driven by inflation, rising energy costs and post-pandemic shifts in demand.
The introduction of a reduced VAT rate of 9% for restaurants and catering services from July is expected to provide further support for hospitality operators in the months ahead.
Fewer receiverships signal lender patience
The data also points to a shift in creditor behaviour. Receivership appointments fell sharply in the first half of the year, dropping to 32 cases from 56 in the same period last year. That decline of just over 40% suggests lenders may be taking a more patient approach as businesses navigate ongoing challenges.
At the same time, rescue mechanisms remain relatively underused. There were 11 examinerships and 16 cases under the Small Company Administrative Rescue Process, together accounting for only 6% of all insolvencies in the period.
While examinership numbers were slightly lower than last year, PwC said the comparison is affected by a single large group restructuring in 2025. The firm noted that examinership continues to provide stronger court protection during restructuring processes, while debate continues about the effectiveness of the SCARP framework for smaller companies.
Revenue enforcement drives liquidations
Court-appointed liquidations increased during the first half of the year, reaching 70 cases, up 23% from 57 in 2025. More than a third of these appointments were initiated by the Revenue Commissioners, indicating continued active enforcement of unpaid tax liabilities.
Geographically, Dublin remains the centre of insolvency activity, accounting for 219 of all cases, or 49% of the national total. Cork recorded 47 insolvencies, while Galway emerged as the third highest county with 36 cases, driven in part by the collapse of a group of retail businesses.
Employment link remains key indicator
PwC also reiterated the strong historical link between unemployment and insolvency rates. Its analysis shows that a one percentage point increase in unemployment typically correlates with an increase of around 250 insolvencies.
Unemployment in Ireland has remained relatively low in 2026, ranging between 4.7% and 4.9%, which has helped keep insolvency levels contained. However, any upward movement in joblessness could translate quickly into higher business failures.
Outlook shaped by cost pressures and structural change
Ken Tyrrell, Business Recovery Partner at PwC Ireland, said the figures highlight both stability and emerging risks.
“The data shows a remarkable steady level of insolvencies over the last three years indicating sustained resilience by Irish businesses,” he said.
“Businesses continue to face elevated input costs across energy, transport and wages, with renewed increases in global energy prices feeding through to operating expenses. Inflation, while moderating from peak levels, is still putting pressure on both margins and consumer spending, limiting the ability of firms to pass on higher costs.”
Tyrrell added that many companies, particularly SMEs, are operating with limited margin for error.
“As a result, many businesses are seeing ongoing pressure on margins, leaving them more vulnerable to cashflow challenges. Companies are also dealing with disruption stemming from AI transformation and international headwinds.”
He advised firms to remain focused on financial discipline.
“Businesses should focus on their core strategies and cost bases while actively managing their working capital and cash projections to ensure that they are financially sustainable into the future,” he said.
The findings reinforce the importance of building a cash-conscious culture across organisations, with responsibility shared beyond finance teams to ensure resilience in an evolving economic environment.
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