Restructuring Update – Q3 2025

Overview

PwC’s latest Insolvency Barometer 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 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 2025 (a fall of 22%) and bringing the total number of insolvencies for the year-to-date to 641. Insolvencies for Q1 2025 (192) align closely with Q3 2025 and 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 stability 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 represent over 3,000 insolvencies per annum.

Retail insolvencies continue to trend downward, nearly 30% lower in the 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 almost 30% lower compared to 161 for the same period last year.

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

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

The hospitality sector recorded 32 insolvencies in Q3 2025, a 20% decrease from the 40 cases reported in Q2 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.

SCARP process continues to have an extremely low uptake

19 SCARP appointments in the year to date, down from 22 for the same period last year, indicates a continued extremely low uptake of the process by SMEs. We are seeing some companies potentially preferring to opt for examinership, which has seen 22 companies enter examinership in the year to date, an increase from seven companies during the same period in 2024.

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.