There were 875 corporate insolvencies in 2024, according to new figures published by Deloitte.
The total is 212 more than in 2023 – a 32% increase - and the highest level recorded since 2016 when the total was 1,032.
The final number of insolvencies for 2024 aligns closely with Deloitte’s previous forecast for the year of 900.
It comes as Deloitte forecasts that the number of corporate insolvencies in Ireland is likely to be around 1,000 in 2025 with the services, hospitality, retail and construction sectors expected to remain the most affected.
Leinster had the highest number of insolvencies in 2024 with 677 in total, accounting for 77%. There were 117 in Munster, 68 in Connacht and 13 in Ulster.
Sector Focus
The services sector recorded the highest number of insolvencies in 2024 at 333, followed by hospitality at 147 and retail at 97. The services sector includes real estate, educational services and fitness & beauty.
There was a significant increase in the retail and hospitality sectors, up 64% and 48% respectively.
Over the last four years, there has been a significant increase in the level of insolvencies in the hospitality sector. It suggests that many businesses were able to continue operating due to the availability of Government supports during the Covid-19 pandemic. There were 31 insolvencies in the hospitality sector in 2021, 61 in 2022, 99 in 2023 and 147 in 2024.
SCARP Underperformance
Deloitte’s analysis shows much of the insolvencies were CVLs (76%) – a process in which businesses enter liquidation when they can no longer meet their financial obligations.
Only 3.5% of insolvent companies went through SCARP, which amounts to just 30 of the 875 total, compared to 33 in 2023.
James Anderson, Turnaround & Restructuring Partner, Deloitte Ireland said:
"The increase in insolvencies in Ireland in 2024 was largely down to higher costs of doing business for SMEs, the ending of debt warehousing in 2024 and the limited working capital supports available resulting in the business owners using personal resources to meet cashflow pressures.
Small businesses, in particular, are being affected by these issues. The SCARP process was introduced to help businesses to restructure debts, however, take up levels remain lower than anticipated. The availability of an opt-out provision for state creditors agency is unique when considering international corporate restructuring processes and this is impacting take up levels.
Given the issues that were central to the high level of insolvencies in 2024 are likely to persist in 2025, we are forecasting that the number for this year will surpass 1,000. This is based on the average annual increase of insolvencies from 2022 to 2024 being 30%, applying a 15% increase to 2024 figures brings the total to 1,006."
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Media Contact(s):
Declan Jackson
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Georgina Francis
Deloitte Ireland Communications
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