Business failures could soar following removal of supports, PwC warns

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Business failures could soar, PwC warns, as data points to 18% jump in first half of the year as Government halts employment wage subsidy scheme, with 58% surge in SME liquidations more recently.

PwC’s offices on North Wall Quay in Dublin. The consultancy firm estimates that up to 4,500 businesses here were saved from failure primarily as a result of the Government’s Covid supportsCompany insolvencies could rise dramatically in the coming months amid the withdrawal of pandemic supports and the surge in inflation and energy costs, a report by consultancy firm PwC has warned.

“The business failure rate continues at a record low, but there are clouds on the horizon. We are now seeing business failure levels slowly but steadily increasing, albeit still from a very low base,” Ken Tyrrell, business recovery partner at PwC Ireland, said. PwC estimates that up to 4,500 businesses here were saved from failure primarily as a result of the Government’s Covid supports, with a number of these businesses essentially being put on “life support”.

Kilkenny had the highest business failure rate on a per-county basis recording 13 business failures per 10,000 businesses, while Dublin recorded a marginal decrease in insolvencies per 10,000 businesses – a fall from seven per 10,000 to five per 10,000.

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