10% increase in corporate insolvencies in Q2 2015

Press Release

SMEs encouraged to utilise new schemes of arrangement in Companies Act, and examinership-lite process. Retail industry sees 52% increase in corporate insolvencies

Insolvency Statistics - Q2 2015

There were 275 corporate insolvencies in the second quarter of 2015, according to figures released today by Deloitte, and published by This represents a 10% increase on Q1 2015, but is down from the same period last year, when 347 insolvencies were recorded.

Types of insolvencies

Of these 275 corporate insolvencies, creditors’ voluntary liquidations accounted for the vast majority with 184 recorded in the period (67%). This is consistent with both the same period last year, and also in Q1 2015, where creditors’ voluntary liquidations accounted for 69% and 71% of total insolvencies respectively. 

Receiverships accounted for 75 (27%) of the total corporate insolvencies in Q2 2015, up by 20 from Q1 2015. Compared to the same quarter in 2014, the number of receiverships was down by three from 78.   

There were 13 court liquidator appointments in the current period, the same number as was recorded in Q1 2015. In 46% of these current cases the Revenue Commissioners took the petition to wind up. The 13 court liquidations in the current period represents a 35% decrease on the same period in 2014, down from 20. 

Similar to the last quarter, examinerships continue to remain at disappointingly low levels and Q2 2015 saw only three examiners appointed out of the 275 corporate insolvencies recorded, just 1%. This level of examinership take-up is consistent, and indeed slightly lower than comparable periods and shows that the introduction of new legislation in early 2014 has not had the anticipated effect of encouraging struggling SMEs to avail of this more cost-effective and accessible option.  

David Van Dessel, Partner, Restructuring Services, Deloitte urged companies to avail of this option, in addition to the new schemes of arrangement now available under the Companies Act 2014. “The Act, which came into effect on 1 June 2015, has made the restructuring  process even easier and more accessible with the new schemes of arrangement and less court involvement overall in the process. These changes, coupled with the “examinership-lite” legislation of 2014, have given directors of struggling companies real options for restructuring their debt and getting back on an even keel. Take up of examinership continues to remain at very low levels when compared to our international peers and shows that a real effort needs to be made to educate SMEs on this option.”

Geographic breakdown

The highest number of corporate insolvencies Q2 2015 was recorded in Leinster with 67% of the total appointments. This is consistent with the same period last year where Leinster had approximately 60% of all corporate insolvency appointments.  In the current period Munster had 17% of appointments, Connaught 9% and Ulster just 7%, again showing consistency with the same period last year. 

Industry breakdown

The retail sector experienced the most corporate insolvencies in Q2 2015, with 44 (16%). This also represents a 52% increase on the previous quarter, the largest movement over all the industries analysed. The hospitality industry recorded the second highest level of corporate insolvencies at 39 (14%) followed closely by the services sector at 38 (13%).  The construction industry experienced just 12% of the total insolvencies in Q2 2015, which may indicate a slowdown in the rate of business failures in this sector which has dominated the insolvency statistics for many years. 

When examining the year-to-date figures, the most corporate insolvencies have again been recorded in the retail sector which accounts for 14% of the total. This is a change from the same period in 2014 where the construction industry experienced the most corporate insolvencies at 22%. 

Van Dessel commented: “The statistics indicate that trading conditions remain extremely difficult for retailers on Irish high streets. While some consumers feel they may have more to spend, the upturn in the economy is not yet being felt by all. This muted level of increased consumer spend, coupled with legacy issues such as debt levels and costs such as rent, means that it is likely to remain a difficult environment for many Irish retailers in the coming months.

“In terms of the outlook across the board, we are seeing some positive indicators. However, one in five SME corporate loans is non-performing, representing approximately €7.6 billion. In addition, the cost of debt to SMEs has been increasing over the last number of years. Hopefully the lending climate for SMEs will improve with the introduction of the Strategic Banking Corporation of Ireland with its more flexible funding options and also revised Central Bank regulations regarding lending to SMEs.”

“Cash flow pressure often increases as businesses attempt to win and service new customers and this could lead to more insolvency activity particularly in the SME segment. For those companies that are struggling with the likes of debt and cash flow issues, our advice, as ever, is to act early. This is imperative for successful restructuring. Company directors are implored to seek assistance in addressing their financial difficulties before it’s too late to take remedial action.”


Notes to editor

The statistics for corporate insolvencies are based on examinerships, receiverships, and liquidations filed with the Companies Registration Office.

For Further Information Please Contact

Claire Quinn

PR Manager


01 417 2356

Aoibheann O’Sullivan

Murray Consultants

01 498 0346

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The information contained in this press release is correct at the time of going to press.

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Insolvency Statistics - Q2 2015
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