Irish Business Insolvencies and Company Trends in Q1 2026

Insolvency trends, sector impact and economic pressures facing Irish businesses.

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Chapter 1

Overview

Despite several years marked by economic uncertainty, Irish businesses entered 2026 resilient and with an appetite to grow. 

The continued volume of court judgments indicates that financial strain remains a reality for many businesses, particularly those operating on tighter margins or with higher levels of debt. Credit rating and limit changes also highlight that lenders are becoming more risk-averse and selective.

At the same time, the increase in start-up activity compared with the same period last year is encouraging. Entrepreneurs are still confident in the long-term stability of the Irish market, which is great news for business activity in the country. A healthy number of businesses are still seeing their credit rating and limits increase despite the current climate. 

Although insolvency levels are on the rise, Irish businesses show no sign of slowing down. In an uncertain global environment, Ireland continues to stand strong. While some businesses are still facing an uncertain path ahead, it's clear that many are willing to take advantage of new opportunities.

Q1 at a glance:
  • Total insolvencies: 625 insolvencies across Ireland 
  • Change on previous quarter: 10% increase from Q4 2025
  • Year-on-year change: 27% increase from Q1 2025
  • Start-up activity: 7,412 new businesses registered
  • Court judgements: 303 judgments registered

Entrepreneurs are still confident in the long-term stability of the Irish market, which is great news for business activity in the country.

Geraint Coombes
Country Manager Ireland
Chapter 1

Insolvencies by Month

Total number of insolvencies by month

In Q1 2026, 625 businesses in Ireland entered insolvency, marking a 10% rise on Q4 2025 and a 27% increase compared with Q1 2025. This points to a growing strain on Irish businesses as they navigate a challenging economic environment.

Several factors are contributing to this rise in insolvencies: high operating costs, elevated energy prices and persistent supply‑chain challenges. At the same time, financing conditions remain tight, and geopolitical uncertainty has made lenders and consumers more cautious.

January recorded the sharpest increase, reflective of businesses entering the new year with weakened positions after a softer‑than‑expected end‑of‑year trading period. February showed signs of stabilisation, broadly in line with 2025 levels. However, March brought another sharp rise, indicating that Irish businesses remain vulnerable and that early‑year cost pressures are becoming increasingly difficult for many firms to absorb.

As the year progresses, these trends suggest that the pressures seen in Q1 may continue into Q2, particularly for sectors with high operational costs or tight margins. 

Note: Where a business enters insolvency, exits the process, and later re‑enters insolvency, it is recorded only once within the dataset. This ensures the figures reflect the number of unique businesses affected.

Chapter 1

Insolvencies by Sector

Hover over the bars to see the full figures

Businesses across all major sectors are continuing to feel the effects of an unsettled economic environment, and this is reflected in the rise in insolvencies when compared with Q1 2025.

Although the scale of increase varies by industry, the overall trend is clear: persistent cost pressures and cautious demand are placing strain on Irish businesses. 

Wholesale and Retail recorded the largest jump, rising 36% year-on-year. This sector remains particularly exposed to shifts in consumer behaviour. Following closely is Construction, which saw a 35% increase. Already operating on thin margins, high material costs and labour shortages add further pressure.

By contrast, Financial and Insurance Activities recorded only a 2% increase, indicating relative stability in a sector generally better positioned to manage cost pressures and absorb short-term setbacks. 

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

Start-Ups by Month

Hover over the bars to see the full figures

Despite the higher levels of insolvency recorded in Q1, start-up activity remained strong. In Q1 2026, 7,412 businesses were registered, compared with 6,491 in the same period in 2025, representing a 14% increase. The continued growth suggests that confidence among entrepreneurs remains intact, even though business failures are rising. This may be due to the shift in markets opening sector-specific gaps as weaker firms exit, alongside emerging digital opportunities. 

Patterns in activity remained similar to the same period in 2025, with March recording the highest number of new businesses. February remained the lowest month, consistent with typical early-year economic slowdowns. Throughout the quarter, there has been a solid level of activity, continuing the momentum carried over from the end of 2025.

Chapter 1

Court Judgments By Month

Hover over the bars to see the full figures

Court judgments in Q1 2026 remain relatively stable, decreasing 6% on the same period in 2025. 

January saw a notable decrease in court judgments, falling from 142 in December 2025 to 104. By March, this figure reached 93, a significant decrease from the 148 seen in the same period in 2025.

Construction (18%), Wholesale and Retail (18%), Accommodation and Food Services (18%), and Professional; Scientific and Technical Activities (17%) all recorded the highest levels of court judgments. These industries typically operate with tight margins, making them sensitive to fluctuations in demand and costs.

Chapter 1

Limit Changes by Sector

Hover over the bars to see the full figures

In Q1 2026, 15,717 businesses experienced an increase in their credit limits, while 11,881 businesses saw their credit limit reduced. This mixed picture reflects a market where lenders and suppliers are cautiously extending support.

The higher number of credit limit increases suggests that lenders continue to recognise growth potential. However, the volume of reductions highlights that many lenders are concerned about risk exposure, meaning that although the credit environment is not restrictive, it is selective.

Chapter 1

Rating Changes by Sector

Hover over the bars to see the full figures

In Q1 2026, 24,106 businesses in Ireland experienced an improvement in their credit rating, compared with 15,536 businesses whose ratings were downgraded.

The higher number of upgrades signals that credit conditions have remained resilient for a significant portion of the market. Financial performance and stability have strengthened, and there is increased confidence in repayment capacity.

However, the volume of downgrades suggests that the pressures remain far from resolved. Many sectors, such as Construction and Wholesale and Retail, continue to experience financial strain. For these businesses, weakened cash flow has prompted lenders to reassess risk and adjust terms accordingly.

Dive deeper into the data

Curious how the companies you work with are performing? Understand the risk profile of a business using 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.