28 Jul 2026

New Zealand Insolvency Trends

New Zealand Insolvency Trends quarterly update: Q2 2026

New Zealand Insolvency Trends provides a quarterly overview of formal insolvency activity across New Zealand, drawing on Companies Office data and Deloitte analysis. The report examines movements in liquidations, receiverships and voluntary administrations, and highlights key economic, regulatory and sector-specific factors influencing insolvency risk.

Updated each quarter, the report offers insights into emerging trends, regional and sector hotspots, and the broader operating environment impacting New Zealand businesses. It is intended to support business owners, advisers and stakeholders in understanding current conditions and anticipating areas of heightened financial stress.

New Zealand Quarterly Insolvency Trends | Q2 2026

New Zealand's insolvency environment remains under pressure, with elevated insolvency activity continuing through Q2 2026 as cash flow constraints, tax debt and enforcement activity contribute to business failures.

In this edition, we examine the growing pressures facing the hospitality sector, where rising labour costs and subdued consumer spending continue to compress margins and increase financial stress. We also explore the increasing regulatory focus on phoenix company activity, alongside Inland Revenue's new rules targeting overdrawn shareholder current accounts and their implications for businesses and creditors.

The report also provides an overview of the latest insolvency trends by sector, region and appointment type, together with insights into the key economic and regulatory developments shaping New Zealand's business landscape.

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New Zealand Quarterly Insolvency Trends | Q1 2026

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.

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