New Zealand Insolvency Trends

New Zealand’s insolvency environment remains under sustained pressure, with elevated formal appointment volumes continuing into the first quarter of 2026. While the pace of the increase has slowed, the overall level of formal insolvencies remains well above long-term averages, signalling that financial stress across the economy is proving slow to unwind.

In this edition, we explore how delayed interest rate relief, constrained working capital, and heightened enforcement activity by Inland Revenue are shaping insolvency outcomes. Construction continues to be the most distressed sector nationwide, with accommodation and food services also under persistent strain. Regionally, Auckland accounts for more than half of all insolvencies, followed by Canterbury, Wellington and Waikato.

Although there are early signs that insolvency activity may be approaching a cyclical peak, risks remain elevated. Ongoing uncertainty, renewed inflationary pressures and increased regulatory enforcement suggest that many businesses will continue to face difficult conditions through much of 2026.

Our Q1 2026 report provides detailed analysis of insolvency trends by sector, region and appointment type, along with insights into Inland Revenue’s evolving enforcement approach and what this means for businesses navigating financial distress.