Indication of changing dynamics in corporate insolvency appointments, Deloitte research finds
- Company led voluntary liquidations driving reduction in corporate insolvencies, down 5% compared to the same period in 2024. Increased creditor led enforcements changing the dynamics of corporate insolvency appointments.
- Court appointed liquidation increased by 107% (85 in the first 9 months of 2025, compared to the same time in 2024) with creditor led petitions accounting for 73% (62/85) with the Collector General accounting for the majority - 56% (48/85)
- Likely to be c. 825-850 corporate insolvency appointments by the end of 2025
- Receivership activity increased by 29% (102 compared to 79) YTD in 2025 with alternative and international lenders enforcing on the vast majority of these appointments
- Hospitality sector continues to face significant insolvency numbers with 103 in 2025 so far
- Restaurants disproportionately impacted, but VAT rate cut that has been signaled as a part of the upcoming Budget that is just days away is unlikely to decrease insolvency rates in the sector.
- Company led closures (via Creditors’ Voluntary Liquidation) were down 22% (393) compared to the same period in 2024 (502)
- Formal corporate restructuring activity (SCARP & Examinerships) increased by 36% (38) on the same period in 2024 (28)
- 618 corporate insolvencies were recorded in the first 9 months of 2025 - down 5% (618) compared to the same period in 2024 (650)
02 October 2025. There were 618 corporate insolvency appointments recorded in the first 9 months of 2025. This represents a 5% decrease compared to the same period in 2024, according to new figures published by Deloitte Ireland. The number of corporate insolvencies per quarter in 2025 has remained largely consistent with 206 in Q1, 201 in Q2 and 211 in Q3.
Commenting on the latest statistics, James Anderson, Turnaround & Restructuring Partner, Deloitte Ireland said:
The decrease in insolvency activity levels in the first 9 months of 2025 compared to the same period in 2024 highlights interesting trends.
Company led closures (CVLs) are down (-22%), however formal corporate restructuring activity (SCARP & Examinerships) increased (+36%). Creditor led enforcements were also on the rise with Court Appointed Liquidations increasing significantly (+107%) along with Receivership activity increasing (+29%).
Our analysis of the statistics points to increased creditor led enforcement for recover of legacy debts in Court appointed liquidations with the Collector General being particularly active. It also points to increased enforcement activity by alternative and international lenders on both real estate backed and corporate loans which have defaulted or matured without resolution.
SMEs continue to be disproportionately affected with the Hospitality, Retail and Construction sectors accounting for 38% of activity levels similar to 2024. Restaurants, in particular, are facing significant cost challenges that are making their businesses unviable. The VAT rate cut that has been signaled as a part of the upcoming Budget that is just days away is unlikely to change insolvency rates in the sector, as talent and energy costs are the primary factors impacting business success.
Based on the insolvency activity levels and consistency throughout the year to date, we believe that that the 2025 will see c. 825-850 corporate insolvency appointments.
Insolvency Processes
As expected and in line in previous years, Creditors Voluntary Liquidations (CVLs) continue to account for the majority of corporate insolvencies, with 393 CVL’s recorded in the first 9 months of 2025 – 64% of overall 2025 insolvencies so far. This represents a 22% decrease on the same period in 2024. The reduction in Company led corporate closures via CVL is linked to the increased levels of creditor enforcement via Court appointed liquidations and Receiverships.
Conversely, Court appointed Liquidations increased by 107% (85) in the first 9 months of 2025 compared to the same period in 2025. Creditor led petitions accounted for 73% (62/85) of Court appointed liquidations year to date with the Collector General petitioning on 48/85 (56%) of Court Liquidations.
Corporate Receiverships increased by 29% (102/79) in the first 9 months of 2025 with the majority of Receivership enforcements relating to loans secured with alternative and international lenders.
There were 38 formal corporate restructuring processes commenced year to date in 2025 which was an increase of 36% (38/28) on the same period in 2024.
2025 year to date has seen 19 SCARP and Examinership appointments respectively.
Sector Focus
In line with previous periods, the wide-ranging services sector accounts for the highest proportion of corporate insolvencies with 41% (253/618) in the first 9 months of 2025.
Within the services sector, financial services and holding companies account for 36% (91/253) so far in 2025. Other notable services sub-sectors were Technical and Professional Services with 17% (43/253) Health, Education and Social Work with 12% (31/253), Real Estate with 12% (30/253) and Fitness and Beauty with 7% (17/253).
The hospitality sector continues to see significant number of insolvencies – with 17% (103/618) so far in 2025 which is largely in line with the same period in 2024 17% (108/650).
The retail sector recorded 11% (69/618) of corporate insolvency activity year to date which was also largely in line with activity levels in 2024 of 11% (74/650).
The remainder of the insolvencies were spread amongst the other sectors, 10% (62/618) in Construction, 7% (46/618) in Manufacturing, 45 (22/618) in Transport, 25 (14/618) in wholesale, 2% (10/618) in IT and the remainder in other business sectors.
Regional focus
Leinster continues to account for the highest number of insolvencies with 72% (443/618) in 2025. Munster accounted for 20% (124/618), Connacht 6% (40/618) Ulster 2% (11/618) (Republic of Ireland only).
Notes
- Creditors’ Voluntary Liquidation (CVLs) is a terminal insolvency procedure whereby the directors of a company instruct a Licensed Insolvency Practitioner to act as liquidator to wind up the company’s affairs because it has become insolvent and unable to continue to trade.
- Small Companies Administrative Rescue Process (SCARP) was introduced at the end of 2021 and aims to provide a more accessible and cost-effective restructuring process for smaller companies that are viable, yet insolvent.
ENDS
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