The number of insolvencies enforced by creditors increased in 2025 driven by the rise of alternative and international lenders on the market, according to Deloitte's latest figures.
There were 812 corporate insolvency appointments in 2025 - a 7% decrease compared to 2024. A further 900 insolvencies are forecast for this year.
While company led closures - or Creditors Voluntary Liquidations - still accounted for the majority of corporate insolvencies (66%), they have decreased by 20% last year.
Meanwhile, corporate receiverships - a process when a lender takes control of a company’s assets to recover debts with the help of a third party - increased by 30% in 2025. Court appointed liquidations increased by 58%.
According to Deloitte, the increased activity in recovering debts from companies relates to loans secured with alternative and international lenders.
Pillar banks were the main lender for only 2% of all corporate receivership appointments.
Small and medium enterprises continue to be most affected by insolvencies, driven by the "increased cost of doing business, limited access to working capital and an inability to continue repaying legacy Covid-19 related debts," Deloitte noted.
Services and hospitality sector account for highest proportion of corporate insolvencies.
"The dynamics of corporate insolvencies in Ireland are changing," Deloitte’s Turnaround and Restructuring Partner James Anderson said.
"In 2025, there was a decrease in company led closures, and a simultaneous increase of creditor led enforcements. There is a notable trend within this shift, the rise of alternative and international lenders is helping drive this change," Mr Anderson explained.
While he does not expect a significant change in insolvency numbers in 2026, "ongoing cost challenges will continue to disproportionate effect SMEs in both the hospitality and retail sectors."
The Deloitte’s expert does not expect the VAT rate cut scheduled for July 2026 to decrease insolvency rates in the sector.
