There were 407 insolvencies during the first half of 2025, down by one per cent from the same period of last year (412). Insolvencies were spread evenly between the first (206) and second (201) quarters, according to Deloitte.

Creditors' voluntary liquidation, ie company-led closures, decreased 18 per cent year-on-year from 323 in H1 2024 to 266 in the first six months of this year, but court liquidations more than doubled from 19 to 42.

Revenue was the petitioner in 27 out of 42 or 64 per cent of court liquidations in H1, up from six out of 19 (32 per cent) during the first six months of 2024.

Deloitte attributed the rise to companies being unable to meet phased payment agreements with Revenue as part of the Covid-19 debt warehousing programme. 

Receivership appointments, meanwhile, increased 37% from 52 to 71 with the majority initiated by alternative lenders.

The number of businesses availing of the Small Company Administrative Rescue Process (SCARP) jumped from seven to 14. Still, only 99 SCARP appointments have been made since its introduction in December 2021 -- with 22 in 2022, 33 in 2023, and 30 last year -- representing four per cent of all insolvencies during the period.

Despite a 14% decline, hospitality had the most insolvencies of any sector at 66. Restaurants are disproportionately impacted due to legacy debt issues, difficulty attracting and retaining staff, and energy in Ireland being the most expensive in Europe.

Behind hospitality was retail (43), construction (39), manufacturing (28), other business activities (28), transport (17), wholesale (nine) and IT (four).

There was a 50% increase in insolvencies in Munster (69) compared to H1 2024 (46). This increase was predominantly from Cork insolvencies, which have doubled from 21 to 42 Leinster had the highest number of insolvencies (301), as expected.

“Even though insolvency numbers year to date are similar to 2024 levels, with ongoing geopolitical and trade tension, there are significant headwinds to consider for the rest of the year," said James Anderson, turnaround and restructuring partner at Deloitte Ireland.

“SCARP has proven to be a successful process that saves companies and jobs. It is disappointing that awareness remains low despite a success rate of over 70%. It is crucial that an awareness campaign is invested in, so more people are aware of it.

“Hospitality continues to experience a high number of insolvencies, despite the drop in 2025 so far.

"There are signals that the VAT rate may be cut to 9% in the upcoming government budget, but this is unlikely to result in a change in insolvency rates in this sector as the challenges they face include legacy debt issues, difficulty attracting and retaining staff, and high costs, in particular for energy.” 

Photo: James Anderson. (Pic: Supplied)