A report from Deloitte Ireland has predicted that insolvency figures for this year could hit their highest level since 2017.

The business-services firm said that there were 238 corporate insolvencies in the third quarter (Q3) of this year – up 60% compared with the same period last year.

This brought the total for the first nine months of 2024 to 650 – an annual increase of 36%.

The number of insolvencies in the hospitality sector so far this year is up more than 60% on the same period last year.

‘Tailored supports’ for SMEs

“In Deloitte’s last quarterly update, we forecasted that Ireland was on course for more than 800 insolvencies in 2024, but it is now likely that it will be closer to 900,” said James Anderson (turnaround and restructuring partner, Deloitte Ireland).

He added that small and medium-sized businesses (SMEs) continued to be disproportionately affected, accounting for 98% of insolvencies this year.

“More tailored supports and reliefs are required to support SMEs in Ireland,” Anderson commented.

The increase in insolvencies this year has been led by creditor’s voluntary liquidation (CVL), which has seen a 38% increase compared with the same period last year.

SCARP figures ‘low’

The Deloitte figures also show that there have been nine SCARP (Small Companies Administrative Rescue Process) appointments in Q3, bringing the total to 22 in 2024 and saving 272 jobs.

The number of appointments is the same as 2023. Since its introduction, there have been 77 SCARP appointments.

Encouraging SMEs to consider SCARP as an option to support businesses and save jobs, Anderson said that the low number of companies using the process “does not align with the positive impact and outcomes that the scheme has had”.