Corporate insolvency levels in Ireland have remained broadly stable over the past three years, according to PwC’s latest Insolvency Barometer, published today, reflecting the resilience of Irish businesses despite persistent economic headwinds.
PwC recorded 848 insolvencies in 2025, slightly down from 868 in 2024 but still above the 736 cases seen in 2023.
Since the start of 2023, insolvencies have averaged 204 per quarter, underlining a steady trend despite periodic fluctuations.
PwC attributes this consistency to Ireland’s strong recent economic performance, which has helped many businesses navigate inflation, interest rate uncertainty and global volatility.
Using its insolvency rate metric — insolvencies per 10,000 companies — PwC estimates the 2025 rate at 27 per 10,000 businesses.
This remains well below the long-term 21-year average of 49 per 10,000, equivalent to roughly 1,500 insolvencies annually, and far beneath the 2012 peak of 109 per 10,000 companies during the financial crisis.
However, PwC highlights a close historical link between unemployment and insolvency levels.
Its analysis shows that a sustained 1% rise in the unemployment rate typically results in an additional 245 insolvencies.
With unemployment rising from 4% in January 2025 to 4.9% by November, PwC warns that further increases in joblessness during 2026 could lead to higher insolvency levels.
The composition of insolvencies shifted notably during the year. Court-appointed liquidations almost doubled to 113 in 2025, compared with 63 in 2024, with the Revenue Commissioners responsible for three out of every five petitions.
This reflects increased enforcement following the end of the debt warehousing scheme.
Retail remained the most affected sector in absolute terms, with 151 insolvencies in 2025, but this represented a 25% fall on the previous year.
Hospitality insolvencies also declined by 8% to 141 cases, although the sector’s insolvency rate of 68 per 10,000 businesses remains well above the national average.
Voluntary liquidations fell by 13% to 576 cases, signalling relatively favourable trading conditions for SMEs.
Meanwhile, examinership activity more than doubled to 23 cases, contrasting with a continued decline in the use of the SCARP restructuring process.
Geographically, insolvencies remained concentrated in Dublin, Cork and Galway, which together accounted for 70% of all cases, with Dublin alone representing 55%.
Ken Tyrrell, Business Recovery Partner at PwC Ireland, said: “Despite geopolitical instability, inflation, interest rate variability and tariff changes in recent years, the Irish economy has continued to perform well, and is reflected in the current low and stable levels of corporate insolvencies.
“In particular, despite ongoing high costs, retail and hospitality continue to show reduced levels of insolvencies.
Ken Tyrrell, Business Recovery Partner at PwC Ireland
“However, our analysis also shows that if Irish unemployment were to continue to increase, we will also likely see increasing insolvencies in the future.
“We cannot ignore ongoing global geopolitical risks and prevailing economic uncertainties and we will be closely monitoring insolvency levels as 2026 unfolds.
“Businesses should focus on their core strategies and cost bases while actively managing their working capital and cash positions to ensure that they are financially sustainable into the future.”