New Zealand insolvency activity has eased in the first quarter of 2026 after peaking late last year, according to new data from BWA Insolvency.
BWA Insolvency’s Quarterly Market Report shows 772 insolvencies were recorded in Q1 2026, down 17 per cent from 936 cases in Q4 2025. While the quarterly decline suggests business stress may have peaked late last year, insolvencies remain 13.9 per cent higher than the same quarter in 2025, reinforcing that many firms are still operating under sustained pressure.
As attention turns to this week’s budget announcement, BWA Insolvency principal Bryan Williams says the data offers a timely snapshot of the financial resilience of New Zealand businesses.
“The easing in quarterly results should not be mistaken for a full recovery, as the current geopolitical situation continues to affect the market,” says Williams.
“However, this is an external shock, not a home-grown economic failure. When offshore conditions stabilise, the relief here will be felt quickly, although a full return to normality will take time as prices and supply rebalance.”
Williams says the international situation is responsible for business uncertainty: “Elevated input costs, heightened supply-side risk, and persistent caution around spending continue to cause consumer confidence to fall and demand to drop off.”
Liquidations continued to dominate insolvency activity, with 727 in Q1, down 18.6 per cent on the previous quarter but still 13.6 per cent higher year-on-year. Receiverships rose sharply to 37 cases, up 42 per cent on Q4, while voluntary administrations fell to eight cases, indicating fewer distressed businesses are attempting formal restructuring.
Regionally, insolvency activity remains concentrated in the main centres. Auckland recorded 465 insolvencies in Q1, accounting for about 60 per cent of the national total, followed by Canterbury with 132 cases and Wellington with 63.
Several consumer-facing sectors recorded significant quarter-on-quarter declines. Food and beverage insolvencies fell 36 per cent compared with Q4 2025, but remain 31 per cent higher than Q1 last year, indicating the sector is still under pressure. Recent high-profile liquidations, including Karangahape Road venue Verona, and Commercial Bay eateries Gemmi and Gochu, owned by Namu Group, highlight the ongoing challenges facing hospitality operators. Retail trade insolvencies dropped 57 per cent, while property and real estate declined 29 per cent compared with the previous quarter.
However, construction again recorded the highest number of insolvencies by volume, with 215 cases in Q1, slightly up on the previous quarter, underscoring ongoing structural challenges in the sector.
Williams says consumer‑dependent businesses remain vulnerable in the months ahead.
“Consumer-facing sectors will find the next few months difficult. The onset of winter will amplify the consequences that flow from troubled countries. The hardest hit will be those that rely on discretionary spending for incidentals, with that demand likely to drop significantly,” he adds.
While the quarterly decline may be welcomed in the context of the upcoming budget, underlying balance‑sheet stress remains widespread, Williams says.
“There are still many companies with lean balance sheets as a result of COVID and the post-COVID era,” he says. “Many of those companies have accumulated an obligation to Inland Revenue and it is only a matter of time before a demand gets satisfied or liquidation will result.”
At the same time, Williams says the data also points to resilience within the business community.
“Behind this current disturbance exists New Zealanders who have had enough of the nagging malaise associated with having insufficient resources to meet their everyday needs,” he says. “There is evidence of spirited potential among a wave of innovative, tech-driven and AI-focused businesses that are shaping the future economy.”
Williams says New Zealand remains well-positioned once global conditions stabilise.
The full Quarterly Market Report is available here: https://bwainsolvency.co.nz/wp-content/uploads/2026/05/BWA_Insolvency-Market-Report_Q1-2026_FINAL.pdf
About BWA Insolvency
BWA Insolvency is a leading insolvency firm that supports New Zealand businesses through liquidations, receiverships and voluntary administrations (VA), specialising in VA in particular. Founder Bryan Williams has 30 years’ experience in the industry and has recently become just the second person in New Zealand and one of 200 people worldwide to be named a Fellow of global insolvency organisation Insol International.
About the BWA Insolvency Quarterly Market Report
BWA Insolvency has been tracking data on liquidations, receiverships and voluntary administrations since 2012. The Registrar of Companies Office records the filings of companies that have gone into a formal state of insolvency. BWA Insolvency then does a deeper investigation to show industry trends and provide a detailed snapshot of what’s happening in the market for the Quarterly Market Report.