Insolvency levels in Republic of Ireland remain consistent over the last three years – says PwC’s latest Insolvency Barometer

PwC’s latest Insolvency Barometer, analysing insolvencies for the Republic of Ireland for the third quarter of 2025, published today, reveals an average of 204 insolvencies over the last 11 quarters since January 2023.  PwC’s analysis shows that 197 insolvencies were recorded in Q3 of 2025, bringing the 2025 year-to-date insolvencies to 641. Despite some quarterly fluctuations, insolvency levels have remained consistent over the last three years, largely reflecting robust economic performance.  

PwC estimates total insolvencies for 2025 will be in the region of 850, compared to actual insolvencies of 868 for 2024. 

Insolvencies ease in Q3 2025  

There were 197 insolvency cases in Q3 of 2025, down from 252 in Q2 of 2025 (a fall of 22%) and bringing the total number of insolvencies for the year to date to 641. Insolvencies for Q1 of 2025 (192) align closely with Q3 of 2025 which reverses the temporary increase for Q2 of 2025.  Insolvencies year-to-date for 2025 are trending at similar levels compared to the same period for 2024 (660). This consistency suggests that Irish businesses continue to demonstrate resilience in the face of ongoing domestic pressures and global geopolitical uncertainties.   

Insolvency levels remain well below the 20-year average 

PwC’s analysis reveals that the current annual insolvency rate is 29 per 10,000 businesses, representing circa 865 insolvencies per annum. This is far below the 20-year average of 50 per 10,000 businesses which would be circa 1,500 insolvencies per annum.  It is also far below the previous peak of 109 per 10,000 businesses recorded in 2012, which represented over 3,000 insolvencies per annum.   

Retail insolvencies continue to trend lower, nearly 30% lower year-to-date compared to 2024 

Retail remains the sector with the highest absolute number of insolvencies.  However, retail insolvencies declined to 35 in the third quarter of 2025, down from 56 in the previous quarter.  Overall, this brings the 2025 year-to-date total retail insolvencies to 116 which is nearly 30% lower compared to 161 for the same period last year.    

Although retail records the highest absolute number of insolvencies, due to the high number of companies in the sector, this represents 18 per 10,000 businesses which is well below the current overall insolvency rate of 29 per 10,000 businesses.    

Hospitality showing signs of stabilisation, with insolvencies declining each quarter during 2025 

The hospitality sector recorded 32 insolvencies in Q3 of 2025, a 20% decrease from the 40 cases reported in Q2 of 2025. This marks the third consecutive quarterly decline, indicating a potential uplift in the industry despite ongoing macroeconomic pressures and sector-specific challenges. The steady improvement may reflect seasonal recovery, increased tourism activity and targeted Government supports. Additionally, many operators may have adapted their business models to better manage costs and respond to changing consumer preferences, contributing to greater financial stability across the sector. 

 Revenue Commissioners’ recovery efforts continue with court-appointed liquidations remaining elevated for third quarter of 2025 

Court-appointed liquidations remained elevated in the third quarter of 2025, with 35 cases recorded, mirroring the high level observed in the previous quarter. This brings the total for the first nine months of the year to 95 cases, more than double the 42 cases recorded during the same period in 2024. The Office of the Revenue Commissioners continues to be the primary driver of this increase, acting as petitioner in 53 of the 95 cases. This trend reflects ongoing efforts to recover outstanding debts following the conclusion of the Revenue debt warehousing scheme, with enforcement through the courts increasingly utilised.  

SCARP process continues to have an extremely low uptake 

There have been 19 SCARP appointments in the year to date, down from 22 for the same period last year, and this indicates a continued extremely low uptake of the process by SMEs. We are seeing some companies potentially preferring to opt for examinership, with 22 companies entering examinership in the year to date, an increase from 7 companies in the same period in 2024.  

Lender enforcement activity remains muted, slightly higher than 2024 

Receiverships account for only 13% of all insolvencies to date in 2025. 85 receiverships were recorded year-to-date, up 9% compared to the same period in 2024 (78). While slightly elevated, this level of activity indicates that lenders are maintaining a steady approach to enforcement, possibly reflecting a more cautious stance amid evolving market conditions and borrower performance.  

Dublin, Cork and Galway account for the majority of insolvencies  

Dublin, Cork, and Galway account for nearly 70% of all insolvencies recorded in Ireland so far in 2025, with Dublin alone responsible for over half of the total. This geographic concentration highlights the continued dominance of urban centres in business activity, and consequently, in insolvency risk. The trend reflects the higher density of enterprises in these counties, particularly in sectors more exposed to economic fluctuations such as retail and hospitality.   

Ken Tyrrell, Business Recovery Partner, PwC Ireland, commented: “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.  Hospitality is showing signs of stabilisation, with insolvencies declining each quarter during 2025.  This may reflect many operators adapting their business models to better manage costs and respond to changing consumer preferences, contributing to greater financial stability across the sector.  Retail insolvencies continue to trend lower, with a nearly 30% fall for the nine months in 2025 compared to the same period in 2024. Overall, Irish businesses continue to demonstrate resilience in the face of ongoing domestic pressures and global geopolitical uncertainties.  

“However, we cannot ignore ongoing global geopolitical risks and prevailing economic uncertainties, and it remains to be seen what the last quarter of the year has in store.  Businesses and consumers also 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.”

Notes to the editor

Over 4,500 businesses saved as a result of Government COVID supports  

In PwC’s inaugural report, ‘Act Now: From Recovery to Growth’ published in February 2022, it was estimated that over 4,500 businesses were saved from failure primarily as a result of the  Government’s COVID supports, with a number of these businesses essentially being put on ‘life-support’.  

 Why we use a per 10,000 business measure - Insolvency Rate  

PwC’s analysis is based on a per 10,000 measure.  It is also widely used when comparing the birth or death rates across different regions or countries.  It is a simple yet effective statistic for comparison purposes between different periods, industries, towns, counties or countries with different population sizes. It provides meaningful context to the numbers rather than simply looking at them in absolute terms.  

SCARP stands for Small Company Administration Rescue Process. The small company rescue process (“SCARP”) was enacted by the Government to provide an alternative restructuring tool for businesses commencing in December 2021. 

Creating a cash-conscious culture is critical to ensure that organisations can improve and accelerate their resilience to mitigate the impacts and flourish in the future. To achieve this, everyone in the organisation needs to be focused on cash. This is a collective responsibility from the boardroom and across the business - not just the Finance team or Treasury to make decisions impacting cash. 

Four ways to optimise a company’s cash culture 

1. Make cash the business of everyone in the organisation  
2. Cash can mean different things to different people, so make cash relevant to everyone   
3. Forecasting cash and appropriately granular scenario planning   
4. Understanding and sharing your minimum cash thresholds   

ENDS