Dublin and its neighbouring counties have seen the highest levels of business closures relative to their population in the first five months of the year, but Clare is also in the top five, according to new data from Procure.ie.
The consultancy firm has analysed the more than 3,250 businesses that have shut up shop this year based on data compiled by the Companies Registration Office (CRO).
Dublin had a closure rate of 121.1 businesses for every 100,000 people, Procure.ie said, more than double the rate of most other counties, unsurprising given the large number of businesses based in the city and its environs.
Louth and Clare were second and third with rates of 60.8 and 60.2 per 100,000 people, the firm said. “Both counties have a mix of retail, hospitality, and tourism-focused businesses which can be more vulnerable to economic volatility,” Procure.ie said.
Rounding out the top five are Meath and Wicklow, with closure rates of 50 for every 100,000 people living there, “a sign that rapid development and rising commercial costs could be impacting small and mid-sized enterprises in those areas”.
Business closures and insolvencies have been on the rise since 2023. The winding down of Covid-era subsidies and the government’s tax debt warehousing scheme, coupled with rising energy costs stemming from the war in Ukraine, have contributed to the phenomenon.
Company insolvencies reached 875 in 2024, up a third on the previous year and the highest number since 2016, according to a report from accountants Deloitte published in January. The firm predicts that this year’s total will top 1,000, an average of 20 a week.
Hospitality businesses, shops and builders, all of which suffered in 2024, are likely to remain most at risk this year, Deloitte warned.
Hospitality businesses, mostly pubs and restaurants, accounted for 147 casualties in 2024, up from 99 the previous year and more than twice the 66 failures recorded in 2022.
