\u201cYou combine that with the ongoing rising costs for insurance, rates, rent and food over the last few years, and customers start to reduce spending.\u201d<\/p>\n
She said over the past 12 months, there hadn\u2019t been much change in terms of the industries that were struggling, naming construction, hospitality, retail and transport.<\/p>\n
\u201cConstruction comprises around 30% of the liquidation appointments. About 95% of businesses in the construction industry are small with five or fewer employees, so they won\u2019t have the balance sheet strength behind them in a downturn economy.\u201d<\/p>\n
Company removals from the New Zealand Companies Office also hit a high with 50,485 removals in 2025. That\u2019s the highest since 2013, when 54,519 companies were removed from the register.<\/p>\n
It represents the second-worst year for company removals over the last 25 years, according to MBIE\u2019s records.<\/p>\n
Company incorporations also reached its highest levels since 2021, with 60,897 new companies started in 2025.<\/p>\n
At the end of 2025 there were 744,378 registered companies in New Zealand, gaining a net 10,412 companies over the year.<\/p>\n
Commerce and Consumer Affairs Minister Scott Simpson said the Government was committed to growing the economy. Photo \/ Hagen Hopkins<\/p>\n
Commerce and Consumer Affairs Minister Scott Simpson said it was always tough to see high numbers of company liquidations \u2013 a situation that was likely a symptom of a slower-than-expected economic recovery.<\/p>\n
\u201cThis Government is committed to doing what we can to grow the economy and improving the conditions for doing business,\u201d Simpson said.<\/p>\n
\u201cWe are doing this by ensuring that the rules and regulations that are in place are about making it easier, not harder, to do business and getting rid of regulations that are holding back innovation.<\/p>\n
\u201cFortunately, things are looking good for 2026, and growth is expected. Business confidence is at the highest levels since 2014, and the economy is on the rise.\u201d<\/p>\n
Chasing debts<\/p>\n
Inland Revenue has also increased its influence on the scale of liquidations over the last year, with 650 cases referred to the court for liquidation in the year to June, a 49% increase from the prior year.<\/p>\n
The number of audits it did also rose, up 42% in the year to June. This helped the department collect $4.3 billion in tax debt over the year \u2013 the highest amount since 2018.<\/p>\n