A total of 875 corporate insolvencies were recorded last year, marking the highest level since 2016, according to new figures from Deloitte. Small and medium-sized enterprises (SMEs) remain the hardest hit.
The services sector accounted for the highest number of insolvencies, followed by hospitality and retail. Retail and hospitality saw significant increases, with insolvencies rising by 64% and 48%, respectively.
Leinster experienced the bulk of insolvencies, with 677 cases, representing nearly 80% of the national total.
Deloitte's report cites several factors contributing to the elevated insolvency levels, including rising business costs for SMEs, the conclusion of the debt warehousing scheme, and a lack of sufficient working capital supports.
The outlook for this year appears grim, with Deloitte predicting that insolvency numbers could exceed 1,000 in 2025.
The analysis revealed that 76% of last year’s insolvencies were Creditors' Voluntary Liquidations (CVLs), a process triggered when businesses cannot meet their financial obligations.
In contrast, only 3.5% of insolvent companies utilized the Small Companies Administrative Rescue Process (SCARP), amounting to just 30 cases out of the 875 total, down slightly from 33 in 2023.