Retail and construction insolvencies are up 25% and 26% respectively year to date in 2026 — says PwC's latest Insolvency Barometer

PwC’s latest Insolvency Barometer for the nine months ended September 2026, analysing insolvencies for the Republic of Ireland, published today, reveals that insolvencies continue to be remarkably stable.

Insolvency volumes for the first nine months of 2026 continue to be remarkably consistent, at a similar level as 2025, and running well below the long-term average.  There were 204 corporate insolvencies recorded in Q3 2026, bringing the total for the year to date to 648 and broadly in line with the 633 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 have averaged approximately 207 per quarter since the start of 2023. This highlights the sustained resilience of Irish companies despite persistent economic headwinds.

Insolvency rate remains well below the long-term average

The PwC latest Insolvency Barometer shows the annual insolvency rate remains at approximately 27 per 10,000 businesses, which equates 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 insolvencies p.a.) and far below the peak of 109 per 10,000 recorded in 2012 (equating to c. 3,500 insolvencies p.a.).

Retail insolvencies up 25% in 2026 as the sector continues to record the highest insolvency volumes, accounting for almost 1 in 4 of all insolvencies

There were 142 retail insolvencies recorded in 2026 year-to-date which is an increase of 25% on the 114 recorded in the same period of 2025. The sector continues to record the highest number of insolvencies of any sector, accounting for almost 1 in every 4 insolvencies for the year to date.

Insolvencies in the construction sector are up 26% - second highest insolvency volumes of any sector 

With 38 insolvencies recorded in Q3, the construction sector recorded 91 insolvencies in the year to date, up 26% from the same period last year (72) and the second highest volumes of any sector. Insolvencies in the sector are concentrated in the Property Development (47) and Trades subsectors (27).  The number of insolvencies in the construction sector have been increasing gradually since 2025, which suggests some pressure is building within the sector and Q4 will be an important trading period for the sector.

Hospitality insolvencies down 23% 

The hospitality sector recorded 25 insolvencies in Q3 2026, bringing total insolvencies to 85 for the year to date. This is a decline of 23% when compared with the same period of 2025 (111) and below the sector’s average of 35 insolvencies per quarter since the start of 2023. This continued decline in hospitality insolvencies suggests further stabilisation in the sector, potentially supported by the reintroduction of the reduced VAT rate of 9% for restaurants and catering services from 1 July 2026.

Significant drop in lender enforcements in 2026

Receivership appointments declined further in Q3 2026, with 15 recorded in the period. The total number of receivership appointments for the year to date stood at 47, a significant decline when compared to 82 recorded in the same nine-month period of 2025. This recent trend of lower levels of enforcement may reflect an increase in lender patience and indicates that corporate debts levels are reasonably comfortable at present but may become a little more challenged if we see interest rates increase during the remainder of 2026. 

Rescue processes remain under-utilised

Rescue processes account for just 5% of all insolvencies in the year to date. Q3 2026 saw 1 examinership and 7 SCARP appointments, bringing the respective totals to 12 and 23 for the year to date.  This compares to 21 examinerships and 19 SCARPs by the end of Q3 2025. While examinership numbers have declined from the 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 see further increase in the year

Court-appointed liquidations totalled 107 in the first nine months of 2026, following a further 37 recorded in Q3. This is a 16% increase over the 92 recorded in the same nine-month period of 2025. 45 of the 107 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 records the highest level of insolvencies of all counties in 2026

Dublin continues to account for the largest share of insolvencies, with 325 of the 648 (50%) recorded in 2026 to date. Cork recorded 65 insolvencies in the first nine months of the year, while Galway is the third highest county for 2026 with 53 in the year to date.

Unemployment rate historically tracks insolvency levels 

Based on PwC's analysis completed 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 would correlate 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, PwC expects 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 will likely translate into a corresponding rise in insolvency volumes.

Ken Tyrrell, Business Recovery Partner, PwC Ireland, commented: "The current levels of price increases and cost pressures are not translating into any noticeable increase in insolvency rates.  Our latest Insolvency Barometer highlights the sustained resilience of Irish companies despite persistent economic headwinds. Insolvencies to date in 2026 are remarkably stable and have shown consistent levels since the beginning of 2023. 

"Having said this, the retail and construction sectors have experienced an increase in the level of insolvencies, potentially indicating the impact of some economic pressures. Rising costs and shifting consumer behaviour is contributing to the rise in retail insolvencies while cost pressures including higher energy costs are impacting the construction sector. In the current environment, businesses should focus on managing their cost bases and supply chain while actively managing their working capital and cash projections to ensure that they are financially sustainable into the future. Preparing good quality financial forecasts and budgeting will be important as ever. ”

"Given the low insolvency levels, it points to the fact that Government measures and support in recent years have contributed to the relatively low level of business failures in Ireland. We expect that that Budget 2027 will continue to deliver measures to support and protect the long-term competitiveness of Irish SMEs and our economy."

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