Irish corporate insolvencies fell 14 per cent in the first quarter of this year to a total of 192 liquidations, receiverships, examinerships and small company administrative rescue processes (Scarps), continuing a drop-off seen in the latter part of 2024, according to PwC.
For last year as a whole insolvencies rose 16 per cent to 852, marking the highest figure in six years.
The recent downward trend “highlights that the Irish economy and many Irish businesses continue to demonstrate resilience despite geopolitical challenges”, the Big Four accountancy firm said.
While the insolvency rate has doubled to a current annualised figure of 29 per 10,000 businesses, it remains below the 20-year average of 50 – and far below a peak of 109 recorded in 2012.
Insolvency events during the first quarter included: fashion retailer New Look putting its business in the Republic into liquidation; officers being appointed to wind up the Irish arm of a global ecommerce service provider Digital River; and receivers being appointed to biofuels business Clonbio Green Gas, trading as Green Generation.
PwC noted that insolvencies among retailers fell 40 per cent on the year to 25 events in the first quarter, demonstrating an improved degree of resilience for a sector that, along with hospitality-related companies, had been among the most affected by financial stress in recent years.
Hospitality recorded 43 insolvencies during the reporting period, which is largely in line with the preceding quarters of 2024.
“For example, there were 40 hospitality insolvencies in the last quarter of 2024, and 154 in total for last year. This consistency suggests that the sector is maintaining its current stability despite ongoing economic challenges,” PwC said. “Our analysis also shows that most of the insolvencies are predominantly small restaurants and cafes.”
Revenue was listed as the petitioner for 16 of the appointments of liquidators this quarter, suggesting that a number of phased payment arrangements agreed at the cessation of the Covid-era debt warehousing scheme have potentially failed, making enforcement action necessary to recover these debts, it said.
“The average lifespan of companies declaring insolvency in quarter one of 2025 was just under 11 years. The shortest-lived company was less than two years old, while the longest lifespan was almost 73 years,” it said.
