Liquidation: March 2026 Sees Record s in Construction and Hospitality
“It looks like this trend will continue into April, with winding up applications above past Aprils and insolvency appointments tracking that way too,” said Keaton Pronk, highlighting a concerning shift in financial stability. March 2026 marked an alarming spike in liquidations, with 286 company liquidations and 308 insolvencies, the highest figures seen since 2015.
The construction industry bore the brunt of this wave, with a staggering 768 firms liquidated over the past year. This surge has left many workers in limbo, as projects stall and jobs disappear. Local contractor Tom Richards from Auckland shared his worries: “We’re seeing projects halted left and right. It’s tough out there for us small businesses.”
The hospitality sector also faced significant challenges, recording 399 liquidations, which represents a 49 percent increase compared to the previous year. Restaurant owner Maria Lopez expressed her frustration: “Every day feels like a battle to keep my doors open. The rising costs are suffocating us.” Her story echoes many others as businesses grapple with mounting debts.
In addition to these sectors, 174 companies in the ‘other services’ category were liquidated—up from 124 last year—marking a troubling 40 percent increase. The automotive repair industry wasn’t spared either; it saw 74 companies go under compared to just 27 a year earlier.
Despite these troubling statistics, there is a glimmer of hope as consumer arrears fell to their lowest level since September 2023. Approximately 95,000 consumers are now more than 90 days behind on payments, indicating some relief in consumer spending.
The situation at Spiders Studios has become emblematic of the broader crisis. The studio is now being liquidated due to the financial insolvency of its parent company, Nacon. In light of this news, one employee remarked, “After a long period without clear answers, we have received confirmation that Spiders is being liquidated.” This sentiment captures the uncertainty many face as companies close their doors.
Keith McLaughlin warned about the potential domino effect: “If somebody owes money to the Inland Revenue, if they ultimately go through, then that creates a domino impact on the market.” As more companies face bankruptcy or liquidation, communities brace for potential economic fallout.
The interactive entertainment industry is also feeling the pressure. One insider noted that it is currently going through a major contraction point, with companies rapidly laying off teams and cutting projects to protect profits. As March closes with these stark realities, stakeholders eagerly await how April will unfold amidst ongoing financial distress.
