Retail insolvencies trending 30% lower than last year

Retail insolvencies so far this year have totalled 116 which is nearly 30% lower compared to 161 for the same period last year.

There have been 197 business insolvencies recorded during the period July to September this year with retail closures trending lower than last year and the hospitality sector showing signs of stabilisation, the latest Insolvency Barometer from professional services firm PwC shows.

During the first nine months of the year, there have been 641 insolvencies recorded with PwC forecasting total insolvencies for the year to be in the region of 850. In 2024, 868 insolvencies were recorded.

The firm’s analysis shows that the current annual insolvency rate is 29 per 10,000 businesses which is far below the 20-year average of 50 per 10,000 businesses which would mean around 1,500 closures a year.

Business recovery partner at PwC Ireland Ken Tyrrell said the level of insolvencies has “remained consistent at relatively low levels over the last three years” which “reflects robust economic performance”.

“However, we cannot ignore ongoing global geopolitical risks and prevailing economic uncertainties, and it remains to be seen what the last quarter of the year has in store. Businesses and consumers also continue to deal with a higher cost base driven by domestic and international factors.” 

There has been an average of 204 insolvencies per quarter since January 2023.

Retail remains the sector with the highest level of insolvencies with 35 recorded over this most recent quarter. However, this is down from the 56 recorded between April and June. Overall, this brings the 2025 year-to-date total retail insolvencies to 116 which is nearly 30% lower compared to 161 for the same period last year.

Hospitality is another volatile sector with 32 insolvencies recorded in the third quarter - a 20% decrease from the second quarter.

PwC said this reduction in hospitality insolvencies marks the third consecutive quarterly decline “indicating a potential uplift in the industry despite ongoing macroeconomic pressures and sector-specific challenges”.

“The steady improvement may reflect seasonal recovery, increased tourism activity and targeted Government supports. Additionally, many operators may have adapted their business models to better manage costs and respond to changing consumer preferences, contributing to greater financial stability across the sector.” 

The sector with the third highest levels of insolvencies during the third quarter was the construction sector with 28.

Court-appointed liquidations remained elevated during the most recent quarter with 35 cases recorded. This brings the total for the first nine months of the year to 95 cases, more than double the 42 cases recorded during the same period in 2024.

The Revenue Commissioners acted as petitioner in 53 of these cases reflecting ongoing efforts to recover debts arising from the debt warehousing scheme with enforcement through the courts being increasingly utilised.

The Small Company Administrative Rescue Process (SCARP) continues to have a very low uptake. There have been 19 SCARP appointments in the year to date, down from 22 for the same period last year.

The SCARP scheme was introduced in late 2021 to help small and micro firms which are still viable, yet insolvent, restructure their debts, avoid liquidation, and ensure creditors get a better outcome rather than the company being wound down.

Dublin, Cork, and Galway account for nearly 70% of all insolvencies recorded in Ireland so far in 2025, with Dublin alone responsible for over half of the total.