Insolvency figures show ‘sustained resilience’
Business-services firm PwC says that insolvencies in Ireland remained stable in the second three months (Q2) of this year, maintaining what it describes as a “consistent trend” in recent years.
According to PwC’s latest restructuring update, there were 232 insolvencies in the quarter, bringing the total for the first half of the year to 444.
PwC says this was broadly in line with the 436 insolvencies noted in the same six-month period in 2025.
The rate of insolvencies in Q2 was 27 per 10,000 companies, which the firm says is significantly below the two-decade average of 50 and the peak of 100 in 2012.
Consistency ‘remarkable’
PwC partner Ken Tyrrell describes the figures’ consistency in recent years as “remarkable”, adding that it highlights “the sustained resilience of Irish companies, despite persistent economic headwinds”.
A breakdown shows that the hospitality sector recorded 28 insolvencies in Q2, bringing the half-year total to 60 – a drop of almost 26% on the 81 recorded in the first half of last year.
“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,” the report states.
It adds that a reduced VAT rate of 9% for restaurants and catering services, which takes effect from 1 July, may provide further relief for firms in the sector.
Retail insolvencies, however, rose by 35% to 109 in the first six months of 2026.
The sector accounted for almost one in every four insolvencies during the first half of the year.
Lender patience
Receivership appointments fell by 43% compared with the first half of last year, with 32 recorded.
PwC says that the lower levels of enforcement may reflect an increase in lender patience and possible consideration being given to the current economic challenges facing companies.
There were 11 examinerships and 16 SCARPs recorded in the first half of this year, accounting for 6% of all insolvencies recorded in the period.
In the same period last year, there were 17 examinerships and 15 SCARPs.
SCARP debate
“The SCARP rescue process remains under-utilised, with ongoing debate within the insolvency sector regarding its effectiveness as a restructuring tool for SMEs,” the PwC report says.
There were 70 court-appointed liquidations in the first half of this year – a 23% increase on the 57 recorded a year earlier.
Petitions filed by Revenue accounted for 24 liquidations, “suggesting the office of the Collector General continues to actively enforce through the courts as a means of debt recovery,” according to PwC.