March 2026 saw the highest number of company liquidations in over a decade, driven by significant tax debt pressures. There were 286 company liquidations and 308 insolvencies in that month alone.
Construction led the way with 768 firms liquidated over the past year. Hospitality followed closely, recording 399 liquidations, which is a 49 percent increase compared to the previous year. Inland Revenue has been a significant driver of insolvencies as it chased unpaid tax debt.
The financial landscape reflects broader trends in consumer credit and financial hardship. Consumer arrears fell to their lowest level since September 2023. However, Kawerau had the highest arrears rate at 17.55 percent.
Key statistics:
- More companies went into liquidation in March 2026 than in any other March since 2015.
- There are currently 13,400 accounts reported in financial hardship.
- 245,000 consumers opened their first credit product in 2025, with 32 percent using buy-now-pay-later products.
Keith McLaughlin commented on the situation, stating, “It really is a tidy-up from the historical past.” He emphasized the need for transparency regarding Inland Revenue debt and its implications for market stability.
Despite these challenges, business credit defaults were down 16 percent year-on-year according to Centrix’s data. This indicates a complex relationship between consumer behavior and economic conditions as businesses navigate these turbulent times.
The automotive repair and maintenance sector also faced difficulties, with 74 companies liquidated over the past year, compared to just 27 a year earlier. The ‘other services’ sector saw an increase in liquidations as well, with 174 companies placed into liquidation this year.
