March 2026 saw a staggering increase in company liquidations, with 286 businesses going under, marking the highest number for this month since 2015. This surge in insolvencies reflects the mounting pressures from unpaid tax debts, particularly affecting small enterprises across various sectors.
In total, 308 insolvencies were recorded in March alone, with the construction industry facing the brunt of the crisis—768 firms were liquidated over the past year. The hospitality sector also struggled significantly, witnessing an alarming 49 percent increase in liquidations compared to the previous year, totaling 399 businesses.
The Inland Revenue has played a pivotal role in these developments, aggressively pursuing unpaid tax debts. Keith McLaughlin noted that “what we’re trying to achieve is a little bit more transparency around IRD debt.” With many businesses unable to meet their obligations, the fallout is creating a ripple effect throughout the economy.
The rising consumer credit landscape complicates matters further. In 2025 alone, 245,000 consumers opened their first credit product, with nearly one-third opting for buy-now-pay-later options. This trend illustrates how financial hardship is becoming more common as individuals seek alternatives to manage their expenses.
Despite these challenges, there are signs of improvement in some areas. Consumer arrears have decreased to their lowest level since September 2023, currently standing at 13,400 accounts reported in financial hardship. However, this positive news is overshadowed by regions like Kawerau, which has the highest arrears rate at 17.55 percent.
The automotive repair and maintenance sector also faced difficulties; it saw 74 companies liquidated over the past year compared to just 27 the previous year. As McLaughlin pointed out, “if somebody owes money to the Inland Revenue and ultimately goes through liquidation, that creates a domino impact on the market.” This interconnectedness underscores how individual failures can lead to broader economic challenges.
The outlook remains uncertain as businesses navigate these turbulent waters. For those affected by these trends in city fitness and beyond, understanding and adapting to this new financial landscape will be crucial for survival.
Key statistics:
- 286 company liquidations in March 2026
- 308 insolvencies recorded during the same month
- 768 firms liquidated in construction over the past year
- 399 liquidations reported in hospitality
- 245,000 consumers opened new credit products in 2025
- 13,400 accounts currently reported in financial hardship
- Kawerau’s arrears rate: 17.55%
- 74 companies liquidated in automotive repair and maintenance sector
