Irish Retail Insolvencies Jump 35% in H1 2026, Total 109
Irish retail businesses saw a 35 percent jump in insolvencies in the first half of 2026, totaling 109, and representing almost one in four corporate failures. This surge is attributed to high energy prices, consumer spending cuts, and fuel protests. Rescue processes like Scarp remain underutilized, with calls for reforms to improve their effectiveness.
Retail businesses accounted for almost one in four Irish corporate insolvencies in the first half of 2026, with the sector experiencing a 35 percent increase in company failures, according to PwC. A total of 109 insolvencies were recorded in the retail sector during this period.
Overall, 444 companies went into insolvency in the first six months of 2026, aligning with 436 in the same period of 2025. PwC noted Ireland's insolvency rate remains steady at about 27 per 10,000 businesses, significantly below the 21-year average of 49 per 10,000.
Ken Tyrrell, business recovery partner at PwC Ireland, highlighted sustained resilience but also areas of concern, particularly in retail. The sector faced pressure from expected consumer spending cuts due to soaring energy prices, fueled by US-Israeli attacks on Iran and the closure of the Strait of Hormuz, and disruptions from early April fuel protests.
Retail sales volumes decreased by 0.5 percent in the 12 months to April, with furniture and lighting sales down over 10 percent, and clothing and footwear sales dropping 7.2 percent. Businesses continue to grapple with elevated input costs across energy, transport, and wages, impacting margins and consumer spending.
Rescue processes for struggling businesses remain underutilized. In the first half of 2026, there were only 11 examinerships and 16 cases using the small company administrative rescue process (Scarp). Scarp, introduced in 2021 as a cost-effective alternative to examinership, saw applications decline by almost a quarter in 2025, prompting calls for reforms.