Restructuring Update – Q1 2026

Court liquidations rise driven by increased Revenue enforcement activity

Court-appointed liquidations rose by nearly 40% in Q2 2025 to 34 compared to 25 in Q1 2025. This brings the total court-appointed liquidations for the first half of the year to 59 – more than three times that recorded (19) during the same period for 2024. The Office of the Revenue Commissioners was the petitioner in 38 of these 59 cases, suggesting that the elevated enforcement actions are linked to the recovery of debts following the conclusion of Revenue’s debt warehousing scheme. For the same period last year, there were five Revenue petitions.

Retail insolvencies more than double in Q2 2025 

The number of retail insolvencies more than doubled in the second quarter of 2025 (53) compared to the first quarter of the year (25). This increase comes after the industry demonstrated strong resilience post-Christmas. However, despite the apparent spike in Q2, the total number of retail insolvencies for the first half of the year (78) is still slightly lower compared to the same period of 2024 (84).

Hospitality insolvencies fall slightly in Q2 2025, despite an industry still facing challenges

The hospitality industry recorded 35 insolvencies in Q2 2025, a decrease of 19% from 43 insolvencies recorded in Q1 2025. Albeit a decrease quarter-on-quarter, this level of hospitality insolvencies is closely in line with the average of 39 insolvencies per quarter observed across 2024 and the first quarter of 2025, indicating a consistency within the industry due to ongoing macroeconomic and sector-specific challenges.

Increase in examinerships, while SCARP utilisation remains low

There was a notable increase in examinerships in Q2 2025, with 13 appointments recorded compared to just one in Q1 2025. Of the 13 companies, seven belonged to a single large group of related companies placed under high court protection, so a more accurate comparable figure is seven for the second quarter. Using this adjusted comparable number of examinerships, the eight appointments for the first half of 2025 represent a slight increase in appointments when compared to the same period of 2024 (six).

SCARP continues to see limited uptake. Fourteen SCARP cases were recorded in the first half of 2025, broadly in line with the 13 cases during the same period of 2024. SCARP cases accounted for just 3% of all insolvencies for the year to date, suggesting that while the process is now well established, its utilisation remains low.

Lender enforcement declines in Q2, but year-to-date levels are up compared to the same period of 2024

Receivership appointments fell significantly in Q2 2025 (19). This represents an almost 50% decrease from the 36 recorded in Q1 2025, and a reversal of the uptick in lender activity seen in the first quarter compared to each of the four quarters of 2024. Despite the slowdown in Q2, the total number of receiverships for the first half of 2025 stands at 55, an increase of 17% over the same period of 2024 (47).

Five ways to optimise your company’s cash culture

1. Make cash everyone’s business

Cash is bigger than the treasury and finance departments. They both have a key coordinating role in effectively managing cash, but it’s the operations of the business that make daily decisions that impact cash. Push cash up everyone’s agenda.

2. Cash can mean different things to different people, so make cash relevant to everyone

Having a common cash language across the organisation (operations and finance) is vital to instilling a proactive cash-conscious culture that produces:

• reliable cash forecasting;

• effective expenditure management and tactical actions;

• cash reporting and incentivisation, tailored to audiences across the organisation;

• management of cash tax and government incentives;

• centralised management of true cash availability and foreign currency cash; and

• effective management of banking and other financing facilities. 

3. Forecast cash and conduct appropriately granular scenario planning

This should involve operations and finance teams, as they are essential in reflecting and understanding the real operational risks in the current volatile market.

4. Understand and share your minimum cash thresholds

This will help colleagues in the wider business manage their daily decisions and cash commitments (once the decision is made, the cash is committed).

5. Optimise supplier and customer working capital terms and relationships

This will help conserve and generate the cheapest form of cash available to you.

We are here to help you

The months and years ahead will be challenging for many Irish businesses, but we are ready to help you. Contact us today.