There were a total of 852 insolvencies in Ireland last year, a 16% increase on 2023, a new report by PwC has found.
According to PwC’s Q4 2024 Restructuring Update, the number of insolvencies over the course of the year was lower than expected, with some 900 insolvencies having previously been forecast. The total number of insolvencies recorded in 2023 stood at 734.
The fourth quarter of the year saw a notable decline, year-on-year, in insolvencies, reversing the upward trend from previous quarters.
Company lifespan
According to PwC, the average lifespan of companies declaring insolvency was 13 years, with the shortest being ten months and longest being almost 60 years.
It also noted that SCARP (Small Company Administrative Rescue Process) and examinership functions remain underutilised in Ireland, with only one in 20 insolvent companies opting for these rescue processes.
‘This underutilisation suggests that most insolvent companies have fundamental profitability issues and are opting for liquidation rather than a rescue process,’ PwC noted.
Retail tops the list
On a sector-by-sector basis, the Irish retail industry accounted for 24% of total insolvencies in 2024, the data revealed, the highest of any sector, with a rate of 32 insolvencies per 10,000 businesses.
The hospitality sector remained steady, contributing 18% of the total number of insolvencies, albeit with one of the highest rates of insolvency at 77 per 10,000 businesses.
Elsewhere, the number of receivership appointments declined by 13%, continuing the trend of lender patience seen in recent years.
Announcing the data, PwC highlighted the importance of optimising a company’s cash culture, including fostering alignment between finance and operations, improving cash forecasting, managing working capital relationships, and understanding minimum cash thresholds to guide daily decision-making.
‘Having a common cash language across the organisation (operations and finance) is vital to instilling a proactive cash-conscious culture,’ it added. Read more here.
