Figures from PwC show a sharp rise in the number of business failures so far this year, though the firm says that the figure remains below the long-term average.

PWC’s says that there were 661 insolvencies in the first nine months of 2024 – an increase of 35% compared with the same period last year.

The business-services firm predicts that the figure for the full year will hit 900 if the current trend continues.

It adds that the insolvency rate has risen to 32 for every 10,000 businesses. This is more than double the rate (14 per 10,000) recorded in 2021, but below the 20-year average of 51 per 10,000.

More retail failures

The retail sector has accounted for one-quarter of all insolvencies so far this year, according to PwC, and there was a jump in failures in the sector in the third quarter.

The 31 failures in the hospitality sector in the third quarter of this year were broadly in line with the second quarter, but down from the 49 recorded in the first three months of this year. The sector, however, has the highest insolvency rate of 58 per 10,000 firms.

Liquidation has accounted for 84% of all insolvencies so far this year.

Rescue processes such as examinerships or SCARPs made up just 5% of insolvencies.

“This is consistent with the same period of 2023 (30), and suggests that there are underlying viability issues, with the companies going straight to liquidation rather than availing of rescue processes such as examinership or SCARP,” PwC says.