Insolvency levels for Ireland remain remarkably steady - says PwC’s latest Insolvency Barometer 

PwC’s latest Insolvency Barometer for the half year (H1) to end June 2026, analysing insolvencies for the Republic of Ireland, published today, reveals that insolvency volumes in the first half year of the year to end June 2026 continue to be remarkably consistent, running below average.

There were 232 corporate insolvencies recorded in Q2 2026 bringing the total for the first half of 2026 to 444, broadly in line with the 436 insolvencies recorded in the same period of 2025. 

This remarkable consistency reinforces the trend of stable insolvency volumes that has characterised the Irish market over the past three years, during which quarterly insolvency volumes averaged roughly 207 insolvencies per quarter since the start of 2023. This highlights the sustained resilience of Irish companies despite persistent economic headwinds.  

Further, it is important to note that while insolvency volumes have been stable in recent years, they also remain below the longer-term average of c.250 insolvencies per quarter since 2005.

Insolvency rate remains well below the long-term average

PwC’s Insolvency Barometer shows the annual insolvency rate remains at approximately 27 per 10,000 businesses, equating to nearly 900 insolvencies per annum. This is far below the 21-year average of 49 per 10,000 businesses (equating to c.1,575 per annum) and even further below the previous peak of 109 per 10,000 recorded in 2012 (c. 3,500 per annum).

Retail insolvencies increased by 35% in H1 2026 as sector continues to record the highest volumes

There were 109 insolvencies recorded for the retail sector in H1 2026.  This is an increase of 35% on the 81 recorded in H1 2025 resulting in the sector accounting for almost 1 in every 4 insolvencies during the first half of 2026. 

Hospitality insolvencies decline by more than 25% in H1 2026 compared to H1 2025 

The hospitality sector recorded 28 insolvencies in Q2 2026, with H1 2026 recording 60 in total. This is a decline of 26% on the 81 recorded in H1 2025 and below the sector's average of 35 insolvencies per quarter since the start of 2023. The decline may reflect some stabilisation within the sector, after operators faced significant headwinds such as cost inflation, energy price increases and post-pandemic demand shifts. This decline comes ahead of the reintroduction of the reduced VAT rate of 9% for restaurants and catering services from 1 July 2026, which may provide further relief for operators of such businesses.  

Lender patience persists in H1 2026 – receivership appointments decline significantly

Receivership appointments declined significantly in H1 2026, with 32 recorded in the first half of the year. This is a decline of almost 43% when compared with H1 2025 (56). This recent trend of lower levels of enforcement may reflect an increase in lender patience and possible consideration being given to the current economic challenges facing companies. 

Rescue processes remain underutilised, accounting for just 6% of all insolvencies in H1 

There were 11 examinerships and 16 SCARPs recorded in H1 2026, accounting for 6% of all insolvencies recording in the period. This compares to 17 examinerships and 15 SCARPs in H1 2025. While examinership numbers have declined from the H1 2025 level, that period included a single large group of 7 related companies placed under high court protection, making the adjusted comparison broadly stable. The SCARP rescue process remains underutilised, with ongoing debate within the insolvency sector regarding its effectiveness as a restructuring tool for SMEs. Examinership continues to offer a greater level of court protection while a rescue plan is formulated and, in appropriate cases, represents a stronger alternative to the SCARP process.  

Court liquidations increase over first half of 2026

Court appointed liquidations totalled 70 appointments in the first half of 2026, a 23% increase over the 57 recorded the same period of 2025.  More than a third (24) of these 70 appointments resulted from petitions filed by the Revenue Commissioners, suggesting the office of the Collector General continues to actively enforce through the courts as a means of debt recovery. 

Dublin, Cork and Galway record highest level of insolvencies for H1 2026

Dublin continues to account for the largest share of insolvencies, with 219 of the 444 (49%) recorded in H1 2026. Galway recorded 36 insolvencies in the first six months of the year, mainly attributable to the liquidation of a group of retail stores based in the county. This brings Galway to the third highest county for H1 2026, behind Dublin and Cork (47). 
 
Increase in unemployment rate historically corresponds to increase in levels of insolvency Based on PwC’s analysis in early 2025, there is an almost perfect statistical correlation between the Irish unemployment rate and the Irish insolvency rate per 10,000 companies. The analysis demonstrated that a 1% increase in the unemployment rate in Ireland correlates to a 0.08% increase in the insolvency rate (i.e. an increase of 8 per 10,000 businesses). In other words, for every 1% increase in the unemployment rate, we would expect to see an additional 250 insolvencies. The Irish unemployment rate has remained low in 2026 by historical standards (c.4.7%–4.9%), albeit marginally higher than 2025 levels. Consistent with historic trends, any further increase in unemployment during 2026 would be expected to translate into a corresponding rise in insolvency volumes.

Ken Tyrrell, Business Recovery Partner, PwC Ireland, commented: “The data shows a remarkable steady level of insolvencies over the last three years indicating sustained resilience by Irish businesses.  However, there are areas of concern: 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.   As a result, many businesses, particularly SMEs, are seeing ongoing pressure on margins, leaving them more vulnerable to cashflow challenges.  

“Companies are also dealing with the disruption stemming from AI transformation and international headwinds. 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.”

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 PwC uses 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