Our latest Insolvency Barometer, analysing insolvencies in Q1 2025, shows that insolvencies continue to decline. This continues the downward trend identified in Q4 2024.
There were 14% fewer insolvencies in the first quarter of this year (192) compared to the first quarter of 2024 (222). Similarly, there were 7% fewer insolvencies in the first quarter of this year compared to the last quarter of 2024 (207).
The continued year-on-year decline demonstrates the robustness and resilience of the Irish economy However, it remains to be seen how well businesses will deal with the year ahead.
Retail recorded only 25 insolvencies for the first quarter of 2025, a significant decrease of 40% compared to the same quarter in 2024 (42). This also marks a notable decrease compared to each quarter in 2024, specifically a 38% decrease on Q4 2024 (40).
Industry | Absolute figures | Absolute figures | Per 10,000 businesses |
Q1 2025 | Q4 2024 | LTM | |
Hospitality | 43 | 40 | 75 |
Real estate | 26 | 10 | 35 |
Retail | 25 | 40 | 29 |
Construction | 20 | 26 | 22 |
Health | 19 | 9 | 81 |
Manufacturing | 14 | 13 | 24 |
Finance and insurance | 9 | 25 | 61 |
Professional, scientific, and technical activities | 8 | 8 | 29 |
Travel and transport | 8 | 7 | 8 |
Information and communication | 7 | 15 | 19 |
Arts, entertainment and recreation | 6 | 3 | 79 |
Energy and utility | 5 | 5 | 164 |
Education | 2 | 3 | 19 |
Administration | 0 | 1 | 38 |
Mining and quarrying | 0 | 1 | 9 |
Other | 0 | 1 | 3 |
Hospitality recorded 43 insolvencies in the first quarter of 2025, which is largely in line with the preceding quarters of 2024. For example, there were 40 hospitality insolvencies in the last quarter of 2024 and 154 in total for last year. This consistency suggests that the sector is maintaining its stability despite ongoing economic challenges. Our analysis also shows that most of the insolvencies are predominantly small restaurants and cafés.
There were 25 court-appointed liquidations in the first quarter of 2025, well over double the number in Q1 2024 (7). This continues the upward trend of court appointments, which started in early 2024. Revenue is listed as the petitioner for 16 of the appointments in Q1 2025, suggesting that a number of phased payment arrangements (PPAs) agreed at the cessation of the debt warehousing scheme have potentially failed, making enforcement action necessary to recover these debts.
There were 122 Creditors’ Voluntary Liquidations (CVLs) recorded in the first quarter of 2025, a 33% decrease compared to the same quarter in 2024 (184) and the lowest number recorded since the first quarter of 2023 (119). CVLs remain the most common form of insolvency, accounting for more than 60% of insolvencies in the quarter.
1. Make cash everyone’s business
Cash is bigger than the treasury and finance departments. They both have a key coordinating role in effectively managing cash, but it’s the operations of the business that make daily decisions that impact cash. Push cash up everyone’s agenda.
2. Cash can mean different things to different people, so make cash relevant to everyone
Having a common cash language across the organisation (operations and finance) is vital to instilling a proactive cash-conscious culture that produces:
3. Forecast cash and conduct appropriately granular scenario planning
This should involve operations and finance teams, as they are essential in reflecting and understanding the real operational risks in the current volatile market.
4. Understand and share your minimum cash thresholds
This will help colleagues in the wider business manage their daily decisions and cash commitments (once the decision is made, the cash is committed).
5. Optimise supplier and customer working capital terms and relationships
This will help conserve and generate the cheapest form of cash available to you.
The months and years ahead will be challenging for many Irish businesses, but we are ready to help you. Contact us today.