Insolvency levels in the second quarter of the year jumped 20 per cent when compared to Q1, new data shows.

Despite the jump PwC’s latest Insolvency Barometer reveals the number of insolvencies over the first half of the year is largely in line with last year.

In the second quarter of 2025 there were 229 insolvencies, an almost 20 per cent increase compared to the lower insolvencies in Q1 of 2025 (192). 

But the total insolvencies for the first half of the year (421) are exactly in line with the number of insolvencies recorded in the same six-month period of 2024.

PwC suggested "this consistency suggests that the Irish economy and Irish businesses continue to demonstrate resilience amid domestic challenges and international geopolitical uncertainties."

Not surprisingly, Dublin leads the way followed by Cork, Galway, Kilkenny and Meath account for three out of every four insolvencies for the quarter, with Dublin alone accounting for half of all insolvencies.

The report notes a sizeable increase in the number of court liquidations.

Court-appointed liquidations rose by nearly 40 per cent in Q2 of 2025 to 34 compared to 25 in Q1 of 2025.

It brought the total number of court-appointed liquidations for the first half of the year to 59 – more than three times that recorded (19) during the same period for 2024.

The Office of the Revenue Commissioners were the petitioner of 38 of these 59 cases.

The report notes that the "elevated enforcement actions are linked to the recovery of debts following the conclusion of Revenue’s debt warehousing scheme are a key driver. For the same period last year, there were five Revenue petitions."

Interestingly, during the first six months of 2025, the Revenue Commissioners have petitioned to liquidate 38 companies, which is nearly three times the number of companies (14) seeking to avail of the SCARP rescue process.  

Meanwhile, the number of retail insolvencies more than doubled in the second quarter of 2025 (53) compared to the first quarter of the year (25). This increase comes after the industry demonstrated strong resilience post-Christmas, PwC said.

However, the report also notes that despite the apparent spike in Q2, the total number of retail insolvencies for the first half of the year (78) is still slightly lower compared to the same period of 2024 (84).  

There was also a minor fall in insolvencies in the hospitality industries recorded 35 insolvencies in Q2 of 2025, a decrease of 19 per cent from 43 insolvencies recorded in Q1 2025, but it is closely in line with the average of 39 insolvencies per quarter observed across 2024.

Receivership appointments fell significantly in Q2 of 2025 (19) -- an almost 50 per cent decrease from the 36 recorded in Q1 of 2025.

Despite the slowdown in Q2, the total number of receiverships for the first half of 2025 stands at 55, an increase of 17 per cent over the same period of 2024 (47). 

Overall, the PwC Insolvency Barometer reveals an annual insolvency rate of 29 per 10,000 businesses.

The current rate is more than double the rate of 14 per 10,000 recorded in 2021 and remains below the 20-year average of 50 per 10,000 businesses. The annual insolvency rate remains far below the previous peak of 109 per 10,000 businesses recorded in 2012. 

On examinerships, the report notes a sizeable increase in Q2 of 2025, with 13 appointments recorded compared to just one in Q1 of 2025.

Of the 13 companies, seven belonged to a single large group of related companies placed under high court protection, so a more accurate comparable figure is seven for the second quarter.

The report says: "Using this adjusted comparable number of examinerships, the eight appointments for the first half of 2025 represent a slight increase in appointments when compared to the same period of 2024 (6)."

But the report also notes the Small Companies Administrative Rescue Process or SCARP continues to see limited uptake.

The process, introduced in 2021, is designed to support small and micro businesses facing short-term financial pressure by enabling them to reorganise outside of the courts.

Just 14 SCARP cases were recorded in the first half of 2025, broadly in line with the 13 cases during the same period of 2024.

SCARP cases accounted for just three per cent of all insolvencies for the year to date, 'suggesting that while the process is now well established, its utilisation remains low' the authors of the report note.

Ken Tyrrell, business recovery partner at PwC Ireland, said: “We see a steadying in insolvency levels when you look at the six months ended June 2025 compared to the same period in the previous year, despite an uptick for quarter 2 of 2025.

"This steadying of insolvencies over the six month timeline shows that the Irish economy and Irish businesses continue to demonstrate resilience amid domestic challenges and international geopolitical uncertainties.  

“However, you cannot ignore the ongoing global geopolitical risks and prevailing economic uncertainties and it remains to be seen what the remainder of the year has in store. 

"Businesses and consumers also continue to deal with a higher cost base driven by domestic and international factors.  

"Organisations should continue to reinvent their businesses using AI and emerging technologies.  

"They should focus on their core strategies, cost base and actively manage their working capital and cash positions to ensure that they are financially sustainable into the future.” 

(Pic: Getty Images)