There were 14% fewer insolvencies during the first quarter of 2025 than in the same period last year.

The latest PwC Insolvency Barometer shows there were 192 insolvencies in the first three months of the year, down from 222 in Q1 2024.

The number of insolvencies was also down 7% from the final quarter of last year (207), which PwC said highlighted the resilience of Irish companies despite geopolitical challenges.

The 852 insolvencies recorded last year was lower than 900+ expected.

The current annual insolvency rate of 29 per 10,000 businesses is more than double the 14 per 10,000 in 2021 when Covid-era State supports were available to struggling companies and far below the 2012 peak of 109 per 10,000.

Although insolvencies are surging compared to lows during the pandemic, PwC estimated in 2022 that 4,500 businesses were saved from failure as a result of government Covid supports.

Retail recorded only 25 insolvencies in Q1, a significant decrease of 40% compared to the same quarter in 2024 (42) and a 38% decrease on Q4 2024 (40). 

Hospitality recorded 43 insolvencies during the quarter in line with 40 reported in Q4 and consistent with the 154 recorded during 2025.

Receivership appointments increased by 57% year-on-year, with 36 and 23 appointments recorded, respectively.

Additionally, receivership appointments increased by over 70% compared to the 21 recorded in the final quarter of 2024, showing a significant rise in lender activity.

Despite this increase, the current levels are still below historic norms. Over the past six months, 20 different lenders have enforced on their debt through receivership.

The number of rescue processes recorded for the first quarter of 2025 remains consistent with preceding quarters, with one Examinership and eight SCARPs recorded. Despite the consistent figures, the overall use of rescue processes remains underutilised.

There were 25 court-appointed liquidations recorded in the first quarter, over three times the number compared to the same quarter in 2024 (seven), continuing the upward trend of court appointments that started in early 2024.

Revenue is listed as the petitioner for 16 of the appointments in Q1, suggesting that a number of phased payment arrangements (PPAs) agreed at the cessation of the debt warehousing scheme have potentially failed, making enforcement action necessary to recover these debts, according to PwC.

There were 122 creditors’ voluntary liquidations (CVLs) recorded, a 33% decrease compared to the same quarter in 2024 (184) and the lowest number recorded since the first quarter of 2023 (119).

CVLs remain the most common form of insolvency, accounting for more than three out of every five insolvencies in the quarter.

The average lifespan of companies declaring insolvency in quarter one of 2025 was just under 11 years, down from 13 years reported in PwC’s last Insolvency Barometer.

The shortest-lived company was less than two years old, while the longest lifespan was almost 73 years.

Dublin accounted for three in every five insolvencies, or four in five when also counting insolvencies in Cork, Kildare, Galway and Wexford.

“The continued year-on-year decline in insolvencies demonstrates the robustness and resilience of our economy.  However, with the prevailing economic uncertainties and geopolitical risks looming, it remains to be seen what the year has in store," said Ken Tyrrell, business recovery partner at PwC.

"Nothing is certain and businesses will also need to deal with a higher cost base in 2025 driven by domestic and international factors. 

"I would advise businesses to focus on their core strategies, cost base and actively manage their working capital to ensure that they are financially sustainable into the future.”

(Pic: Getty Images)