The number of companies restructuring their debts through the State's small business rescue scheme dropped by 23% this year, new figures show.
The Small Company Administrative Rescue Process, known as SCARP, aims to facilitate simplified out-of-court debt restructuring for small businesses deemed to be viable.
The latest Azets SCARP Index shows that 23 SCARPs commenced in 2025, down 23% on last year's figure.
374 jobs were saved in 2025 as a result of successful SCARPs concluded this year.
The hospitality sector accounted for the highest proportion of SCARP cases over the past 12 months, followed by the construction and retail sectors.
The index shows there have been 108 SCARP cases since the introduction of the scheme four years ago.
Of these cases, 72% have resulted in successful rescue plans, resulting in 1,448 jobs being saved across 78 different businesses.
"There are growing signs of a two-track economy in Ireland," said Dessie Morrow, Advisory and Restructuring Partner, Azets Ireland.
"While certain aspects of the multinational sector continue to grow, many small indigenous businesses are struggling to cope with the challenges of rising costs and economic uncertainty.
"While many of these businesses, particularly in the hospitality and retail sector, may manage to continue trading through the busy festive season, more firms could face closure in early 2026," he added.
