Court liquidation jumped by 69% in first half of 2026 – Deloitte insolvency figures
- Ahead of the VAT rate cut due on 1 July 2026, the hospitality sector’s insolvency figures continue to drop. Deloitte previously noted that the VAT rate cut is unlikely to positively impact the sector.
- The combined CVLs (Creditor Voluntary Liquidations) and court liquidations in H1 2026 are the highest percentage since before 2020 accounting for 85% insolvency activity. There were no pillar bank appointments, as alternative lenders continue to drive receivership activities.
- At the mid-point of the year, it appears likely there will be 850-900 insolvencies in 2026, based on current projections.
There were 429 insolvency appointments in H1 2026, with 216 in Q2 2026, Deloitte’s latest insolvency figures show. This is a 5.4% rise compared to H1 2025, when there were 407.
Court liquidations rose by 69% in H1 2026 compared to H1 2025, accounting for 71 or 17% of insolvencies.
Revenue led petitions accounted for the highest number of court liquidations - 38% (27/71).
Creditor petitions 10% (7/71) and Company led petitions 52% (37/71) accounted for the rest.
The majority of insolvencies were Creditors’ Voluntary Liquidations (CVLs), accounting for (68%) in H1 2026, a total of 292. This is up by 10% compared to H1 2025.
There were no pillar bank appointments, as alternative lenders continue to drive receivership activities. However, receivership activity is the lowest it has been in the five years since H1 2021.
16 of the 429 insolvencies were Small Companies Administrative Rescue Process (SCARP). A 4% rise compared to the H1 2025, showing continued low levels of uptake.
Ahead of the VAT rate cut due on 1 July 2026, the hospitality sector has continued to experience a drop in insolvencies, down 14% compared to this time last year. Overall, the sector accounted for 13% of insolvencies. The majority were bars and restaurants.
Deloitte has previously noted that the VAT rate cut measure is unlikely to positively impact the hospitality sector, as it continues to face difficulty attracting and retaining staff, the high cost of labour, and the price of energy.
The average company age across all insolvencies was 14.5 years.
However, it was c. 10.5 years in the Hospitality and IT sectors.
67 Companies that have entered insolvency in 2026 were in business for less than 5 years.
Leinster continues to account for the highest number of insolvencies (321/429). Munster experienced 64, while Connacht had 36 and Ulster 8.
If this level of insolvency continues for the remainder of 2026, there is likely to be 850-900 insolvencies in 2026. This is higher than 2025 (812) and in line with 2024 (875).
The high cost of doing business in Ireland is continuing to impact insolvency levels. The combined CVLs and court liquidations in H1 2026 are the highest percentage since before 2020,
says James Anderson, Turnaround & Restructuring partner, Deloitte Ireland.
Deloitte’s figures also show that every four out of five insolvencies are now liquidations, compared to three out of four this time last year.
While I do not expect the Vat rate cut for hospitality due on 1 July to have an impact on insolvencies, it is interesting to see a drop in insolvencies in this sector. Two potential reasons may be businesses holding out the summer period or the Vat rate cut. The following quarters will need to be monitored closely to confirm if the tax measure has any effect. What hasn’t changed for the sector is difficulty attracting and retaining staff members, alongside cost pressures, such as the price of energy.
Similarly, even though insolvencies in the transport sector were down by 29%, the extension of the excise cuts on fuel will need to be monitored to establish if it has a positive impact on the sector.
Notes to Editors
- 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.
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