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Irish Business Insolvencies and Company Trends in 2025

An annual snapshot of insolvency trends, sector impact, and economic pressures facing Irish businesses.

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Chapter 1

Overview

Across 2025 as a whole, 2,267 Irish businesses entered insolvency, representing a 10.4% increase compared with 2024.

Insolvency levels remained elevated throughout the year, reflecting continued pressure from higher operating costs, weaker consumer demand, and constrained access to finance. While several months showed relative stability, volatility increased toward year end, culminating in a sharp spike in December. This sharp year-on-year rise marks a significant escalation in insolvency activity at the end of the year.

While monthly insolvency levels had remained relatively stable through much of 2025, December stands out as a clear spike, suggesting mounting financial strain for Irish businesses. Ongoing cost pressures, tighter credit conditions, and lingering global economic uncertainty are likely to continue weighing on firms into the early part of 2026.

2025 at a glance.

  • Total Insolvencies: 2,267 insolvencies across Ireland

  • Annual Change: Up 10.4% compared with 2024

  • Highest Month: December, with 416 insolvencies

  • Sector Impact: Construction was the most affected sector in 2025

If you want to re-use this data, please contact [email protected]

Chapter 1

Insolvencies by Month

Total number of insolvencies by month.

In December 2025, 416 businesses in Ireland entered insolvency, marking a 93% increase from November and a 143% rise compared with December 2024. This sharp escalation makes December the most severe month of the year and highlights a pronounced deterioration in trading conditions at year end.

Throughout 2025, monthly insolvency figures remained elevated but relatively stable for much of the year, typically ranging between 130 and 215 cases per month. The dramatic spike in December suggests a backlog of financially distressed businesses reaching breaking point, potentially delaying insolvency proceedings until the close of the financial year.

Rising operating costs, sustained pressure on margins, and tighter financing conditions continued to weigh heavily on Irish firms across 2025. While some months showed signs of resilience, the year-end surge indicates that many businesses struggled to withstand prolonged economic strain, leaving them vulnerable as they entered 2026.

To re-use this data, contact: [email protected]

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Professional, Scientific and Technical Activities was the most affected sector in Ireland during 2025, with 499 insolvencies, accounting for 22% of all business failures over the year. This reflects sustained pressure on professional services firms, particularly smaller operators exposed to rising costs and delayed client payments.

Construction followed closely, with 243 insolvencies, representing 11% of total cases. Despite relatively stable year-on-year growth, the sector remained highly vulnerable, reflecting continued challenges around input costs, financing, and project delays.

Wholesale and Retail also recorded elevated insolvency levels, with 209 firms entering insolvency, while Administrative and Support Service Activities saw a notable 64.5% year-on-year increase, reaching 232 insolvencies.

Combined, these sectors accounted for over 40% of all insolvencies in 2025, highlighting the concentration of financial distress in labour-intensive and margin-sensitive industries.

The table below provides a year-to-date (January–December 2025) breakdown of insolvencies by sector, comparing trends over the past four years (2021–2025) to highlight sector-specific shifts and challenges.

Want to explore the data for yourself?

Whether you want to understand the impact of Insolvencies across a group of sectors or the likelihood of an individual company becoming insolvent, you can find all of this data and more within the Creditsafe platform.

Chapter 1

Methodology

Creditsafe uses the following statuses to determine if a company has become insolvent and will count insolvency based on its first insolvency trigger from one of the statuses below:

  • In Liquidation.
  • Administrator Appointed.
  • Appointment of Liquidator.
  • Meeting of Creditors.
  • In Administration.
  • In Receivership.
  • Administrative Receiver Appointed.
  • Administration Order.
  • The company is wound-up.