SME remains the most effected by insolvency in 2025
A total of 812 corporate insolvency appointments were recorded in 2025, according to Deloitte’s latest insolvency figures, representing a 7% decrease compared to 2024.
Despite this annual decline, insolvency activity remained largely consistent throughout the year, with 206 appointments in Q1, 201 in Q2, 211 in Q3 and 194 in Q4.
Looking ahead, approximately 900 corporate insolvencies are forecast for 2026.
Creditors Voluntary Liquidations (CVLs) continued to account for the majority of corporate insolvencies in 2025, with 535 cases representing 66% of all appointments.
However, this marked a 20% decrease compared to 2024, when 668 CVLs were recorded.
Overall insolvency levels remained in line with the previous year due to increased creditor enforcement activity, particularly through Court appointed liquidations and Receiverships.
Court appointed Liquidations rose significantly, increasing by 58% to 104 cases in 2025 from 66 in 2024.
Analysis of the data indicates stronger creditor-led enforcement actions to recover legacy debts, with the Revenue Commissioners playing a prominent role, accounting for approximately 55% of Court Liquidation appointments during the year.
Receivership activity also increased, rising by 30% to 130 cases in 2025, compared with 100 in 2024.
The majority of receivership enforcements related to loans secured with alternative and international lenders, while pillar banks were the lender of record in only 2% of corporate receivership appointments.
SCARP activity declined by 23% year on year, with 23 cases recorded in 2025 compared to 30 in 2024, indicating reduced uptake of the process among smaller companies.
Small and medium-sized enterprises remained the most affected by insolvencies, driven by rising costs, limited access to working capital and difficulties in repaying legacy Covid-19 related debts.
The services sector accounted for the largest share of insolvencies at 43%, followed by hospitality at 16%, broadly in line with 2024. Restaurants and cafés made up 70% of hospitality insolvencies. Retail accounted for 12% of insolvencies, consistent with the previous year.
Regionally, Leinster continued to dominate insolvency activity, accounting for 73% of cases, with Dublin alone representing 61% of all appointments. Munster accounted for 19%, Connacht 6% and Ulster counties in the Republic of Ireland 2%.
Commenting on the report, James Anderson, Turnaround & Restructuring Partner, Deloitte Ireland, said: “The dynamics of corporate insolvencies in Ireland are changing. In 2025, there was a decrease in CVLs (Company led closures), and a simultaneous increase of creditor led enforcements.
“There is a notable trend within this shift, the rise of alternative and international lenders is helping drive this change.
“While I don’t anticipate a significant change in insolvency numbers in 2026, ongoing cost challenges will continue to have a disproportionate effect on SMEs in both the hospitality and retail sectors.
James Anderson, Turnaround & Restructuring Partner, Deloitte Ireland
“The VAT rate cut scheduled for July 2026 is unlikely to decrease insolvency rates in the sector, with labour-related costs, overheads and energy costs impacting business success.
“SCARP activity levels in 2025 reduced by 23% (23/3% in 2025 vs 30/3% 2024) which indicate that the process is not having the desired effect for smaller companies.
“Whilst the success rate from the process remains high with over 250 jobs being saved from successful SCARP schemes in 2025, take up levels remain well behind intended levels when it was introduced in 2021.”
