New Zealand companies face worst March liquidations in 11 years
Updated
Updated · Newsroom · May 7
New Zealand companies face worst March liquidations in 11 years
10 articles · Updated · Newsroom · May 7
March 2026 saw 286 company liquidations and 308 insolvencies, with construction hardest hit at 768 liquidations in the year to March.
Hospitality recorded 399 liquidations, up 49% year on year, as higher interest rates, weaker demand, rising costs and thinner sales pipelines squeezed already narrow margins.
The report argues New Zealand’s insolvency framework pushes viable small firms into late-stage collapse, and calls for earlier, cheaper restructuring options to preserve skills, supplier ties and entrepreneurial risk-taking.
As company failures hit a decade-high, is New Zealand’s insolvency law destroying otherwise viable businesses?
Is the tax office, by driving 70% of wind-ups, a primary cause of the current liquidation crisis?
New Zealand Sees Over 3,000 Business Liquidations in 2026, Highest in 15 Years
Overview
In March 2026, New Zealand saw the highest number of company liquidations for that month in over a decade, contributing to an annual total exceeding 3,000. The construction sector was hardest hit, with 768 firms liquidated, followed by significant distress in hospitality. Key causes included lingering COVID-19 impacts disrupting supply chains and depleting reserves, persistently high input costs, and intensified tax enforcement by Inland Revenue. Small firms, especially in construction and hospitality, were most vulnerable due to limited financial buffers and risky cash flow practices. These failures caused supply chain disruptions, job losses, and broader economic strain. While manufacturing showed some resilience, recovery remains slow and uneven, favoring larger firms amid ongoing challenges and geopolitical risks.