Retail sector worst hit as insolvency levels for Ireland remain remarkably steady

The average lifespan of companies declaring insolvency in was just under 14 years, up from just under 12 years for 2025. The shortest-lived company was less than a year old, while the longest lifespan was almost 54 years.

Ireland recorded 212 business insolvencies in the first quarter this year, with the retail sector being the most impacted.

PwC’s Insolvency Barometer said the figure is broadly in line with recent quarterly averages of approximately 205 since the start of 2023 and said it continues the trend of remarkably stable insolvency numbers over the past three years. 

The insolvency rate for the first three months, at 27 per 10,000 companies, is well below the long-term average of 49 per 10,000 businesses. Despite recent resilience, this stability is expected to be challenged as new cost pressures unfold, resulting from the crisis in the Middle East and wider geopolitical uncertainty.

The retail sector recorded the highest level of first-quarter insolvencies with 50, an increase of almost 50% from the previous quarter. The sector accounted for almost a quarter of all insolvencies for the period. While consistently one of the hardest hit sectors in terms of absolute insolvency numbers, the sector still sits just below the average insolvency rate for Ireland due to the large number of businesses operating in the sector. PWC said 19 of the 50 retail insolvencies related to “Health, Beauty and Wellness” which would be small, owner-operated businesses, including pharmacies and hair-related businesses. 

There were 32 insolvencies recorded in the hospitality sector. Only six are related to accommodation-based companies, illustrating the differing performance of accommodation compared to food and beverage. The hospitality sector has an insolvency rate of 62 per 10,000 - more than double the current rate for Ireland, illustrating that the sector is recording a high number of casualties relative to the number of companies operating in the sector.

There were only 12 corporate receivership appointments recorded in the first quarter, a sharp decrease of over 60% when compared with the preceding quarter.

24 liquidator appointments were made by the Courts in the first three months, largely in line with the quarterly average in 2025 of 29 appointments. With the office of the Revenue Commissioners acting as petitioner in 13 of the 24 appointments, the pattern of the Commissioners’ debt recovery efforts identified throughout 2025 appears to be continuing into 2026.    

There were six examinership appointments and seven SCARP process advisor appointments in the first quarter, representing a modest increase for both processes on the preceding quarter.

Ken Tyrrell, Business Recovery Partner, PwC Ireland, said the stable figures are reflective of a continuing robust economy with a strong fiscal position. "Irish companies have shown impressive resilience despite continuous economic challenges. Hopefully, this stability can continue as new cost pressures unfold, resulting from the crisis in the Middle East and wider geopolitical uncertainty," he said.

The average lifespan of companies declaring insolvency in was just under 14 years, up from just under 12 years for 2025. The shortest-lived company was less than a year old, while the longest lifespan was almost 54 years.