29-06-2025
Revenue ramps up warehoused debt enforcement
The number of court-appointed liquidators for businesses in Ireland jumped in the second quarter, driven by increased Revenue enforcement.
Such liquidations rose to 34, compared to 25 in the first quarter, bringing court-appointed liquidations for the first half of the year to 59, more than three times the 19 recorded in the same period last year.
Analysis by PwC shows that Revenue was the petitioner of 38 of these 59 cases, suggesting that the elevated enforcement is linked to the conclusion of Revenue's debt warehousing scheme. For the same period last year, there were just five Revenue petitions.
Scheme saved 4,500 businesses
PwC estimated that more than 4,500 businesses in Ireland were saved from failure through a range of government supports during the covid pandemic, with a number of these firms being placed on 'life support'. The winding-down of the various schemes has resulted in a rise in business insolvencies and liquidations.
More than 93% (€3bn) of the business tax debts under the Revenue's debt warehouse scheme have now been settled or secured, with €30m being collected in repayments monthly. According to the Revenue's 2024 annual report, 7,000 businesses, with debts of €100m, failed to engage with Revenue to formulate a repayment plan and face normal collection and enforcement proceedings.
20% rise in insolvencies in Q2
PwC said there was a 20% jump in business insolvencies in the second quarter, to 229, compared with 192 recorded in the first three months. However, despite the jump, total insolvencies for the first half of the year are in line with the number in the same six-month period of 2024.
'This steadying of insolvencies over the six-month timeline shows that the Irish economy and Irish businesses continue to demonstrate resilience amid domestic challenges and international geopolitical uncertainties,' Ken Tyrrell, business recovery partner, PwC Ireland, said.
'However, you cannot ignore the ongoing, global geopolitical risks and prevailing economic uncertainties, and it remains to be seen what the remainder of the year has in store. Businesses and consumers also continue to deal with a higher cost base, driven by domestic and international factors. Organisations should continue to reinvent their businesses using AI and emerging technologies.
They should focus on their core strategies, cost base, and actively manage their working capital and cash positions to ensure that they are financially sustainable into the future.
The number of retail insolvencies more than doubled in the second quarter to 53. This increase comes after the industry demonstrated strong resilience post-Christmas. However, despite the apparent spike in he second quarter, the total number of retail insolvencies for the first half of the year (78) is still slightly lower compared to the same period of 2024 (84).
The hospitality industry recorded 35 insolvencies in the second quarter of 2025, a decrease of 19%, from 43 insolvencies in quarter one. Albeit a decrease quarter on quarter, this level of hospitality insolvencies is closely in line with the average of 39 per quarter observed across 2024 and the first quarter of 2025.
Five counties account for 75% of insolvencies: Dublin, Cork, Galway, Kilkenny, and Meath, with Dublin accounting for half of all insolvencies.
There was a notable increase in examinerships in the second quarter, with 13 appointments, compared to just one in the first quarter. Of the 13 companies, seven belonged to a single, large group of related companies placed under high court protection, so a more accurate, comparable figure is seven for the second quarter.
PwC said the Small Companies Administrative Rescue Process (SCARP) continues to see limited uptake, with 14 cases in the first half of 2025, broadly in line with the 13 cases during the same period of 2024.
