Commercial Judgments Up 67% as Insolvencies Shift Toward Older Firms
- by Orlagh on 03/02/2026
While 2025 data highlights sustained momentum in new company formation (26,500 start-ups), emerging indicators point to growing financial strain across the corporate sector.
Rising legal actions and increasing vulnerability among established firms suggests a more challenging operating environment as the economy moves toward 2026.
Signs of Strain: Corporate & Consumer Stress
Although the surge in start ups suggests a more diversified and resilient economy, our data also points to a sharp rise in commercial judgments and growing financial pressure on established firms - indicating that targeted supports will be essential to maintain this momentum into 2026.
Our data shows that 1,808 judgments against companies were raised, totaling E47.2 million. This is a 67% increase in value and a 29% increase in cases compared to 2024. This indicated the struggle of meeting payment commitments of businesses, forcing creditors to seek legal recourse.
Established Businesses Bear the Brunt of Insolvencies
Data shows that the usual age of insolvent companies is 11 years old - suggesting that established businesses are bearing the brunt of rising costs and tighter credit, rather than young start-ups.
Many of this companies have already survived past economic shocks however, they are now facing a more sustained combination of rising operating cost, higher interest rates and tighter access to credit.
It can be harder for mature companies who have fixed overheads, long leases and legacy debt, making them vulnerable as margins shrink and cash-flow pressures mount. This trend points to a challenging environment for the core of the business economy, not just its newest companies.
Commenting on this data, Christine Cullen says:
"While it is encouraging to see strong levels of start-up formation, the rise in commercial judgments signals that many existing businesses are under significant financial pressure. More companies are struggling to meet payment obligations, which is increasingly forcing creditors to seek legal recourse."
"If rising costs, tighter credit conditions and export market volatility persist without adequate support, there is a real risk that today's start-up momentum will not translate into sustainable long-term growth".
Read the full insights here: www.crif.ie/news-events/news/ireland-records-strongest-year-for-start-ups-in-15-years/
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