There were 213 corporate insolvency appointments in the first three months of the year, according to analysis by Deloitte, a 3% rise compared to the same period last year.
Deloitte said early indications suggest retail sector insolvencies are up totalling 30, or 14% of insolvencies.
While hospitality insolvencies were down by 27% ahead of the scheduled VAT rate cut to 9% in July.
However the report said the hospitality sector is expected to continue to experience a high proportion of insolvencies for the remainder of 2026.
As Deloitte has previously stated, the VAT rate cut is unlikely to change this, as the challenges this sector face will continue, such as legacy debt issues, difficulty attracting and retaining staff, and high costs, in particular for energy.
The research shows 70% of all insolvencies were company-led closures, which Deloitte says is a return to the average seen over the past five years.
The average age of the companies that entered a Company Voluntary Liquidation (CVL) was 14 years in Q1 2026. In 2025, the average age was 13 years, showing a level consistency. Only 19 Companies that entered a CVL in Q1 2026 were below five years in business.
14% of insolvencies were court liquidations, while 12% were receiverships, with the report noting a continued low take up of company rescue options despite the introduction of the SCARP process in 2022.
James Anderson, Turnaround & Restructuring partner, Deloitte Ireland said: "The insolvencies landscape continues to evolve. Deloitte's latest Q1 2026 insolvency data shows that company voluntary liquidations are returning to normal levels while receiverships have dropped, this too represents a return to normal levels.
"Receiverships continue to be driven by alternative and international lenders, with no pillar banks being accounted for this quarter. Revenue is driving half of the Court Liquidations.
"The announcement of EU Inc. also represents a potential harmonisation of cross-border restructuring and insolvency that has been ongoing for a number of years. We will continue to monitor developments with interest.
Despite hospitality insolvencies being down, Mr Anderson expects the secto to continue to experience a high proporion throughout the year.
"Businesses in this sector are struggling with legacy debt issues, difficulty attracting and retaining staff, and high costs, in particular for energy," he said. "A VAT rate cut is unlikely to reduce insolvencies in this sector."
Nearly half of insolvencies were from the services sector including financial services, holding companies and real estate.
They continue to account year-on-year for the largest proportion of insolvencies, according to the report.
The remainder of insolvencies were spread amongst construction, IT and manufacturing & agriculture as well as transport, wholesale and others.
Assessing the corporate insolvency figures from the last six months the report showed there were a total of 407 insolvencies.
It said if this level continues for the rest of the year, there is likely to be 840 corporate insolvencies, which would be higher than 812 in 2025 and less than the 875 in 2024.
