Ten years of basic insolvency stats - by Keaton Pronk

For the first quarter of 2026 we have had the highest first quarter in the last 10 years for winding up applications.

Comparatively we have had more winding up applications in 3 months than we had in all of 2020.

March had 90 applications for the month down on both January and February but this is a normal occurrence for March as winding up application drop off as we head into the end of financial year.

IRD remains the main driver of winding up applications making up 73% of the applications for March 2026.

Businesses remain under the pump, with factors both inside and outside their control (war, fuel prices etc.) negatively affecting their bottom line and putting on the squeeze.  Unfortunately, when this has happened in the past and when it inevitably happens again some companies tend to stop paying "The Bank of IRD" first.  It's easy lending with no application forms or messy financial reviews, simply don't pay them and spend the funds elsewhere.  That's a problem for the future to deal with. This is not the recommended approach if you want a long-lasting business.

2026 now looks like it may exceed 2025 if the first quarter is anything to go by, however, it is still early days.

For more detailed stats: Insolvency by the Numbers #62: NZ Insolvency Statistics February 2026 - McDonald Vague Insolvency  (February 2026)

Keaton Pronk is an Auckland-based Licensed Insolvency Practitioner (liquidator).  Link to more of Keaton’s articles is here: Keaton Pronk - McDonald Vague Insolvency