News
November 15, 2025
Liquidations hit decade-high in ‘worst period since global financial crisis’
With 300 business across NZ going under in October alone, liquidations are not slowing down, an expert says - with established and award-winning companies failing.
**Liquidations Surge to Decade-High, Marking a "Worst Period Since Global Financial Crisis"**
New Zealand businesses are facing an unprecedented crisis, with liquidations reaching a staggering decade-high, sparking concerns about the overall health of the nation's economy. October alone saw a concerning 300 businesses shutter their doors, signaling a dramatic escalation in financial distress across various sectors.
Experts are painting a grim picture, describing the current climate as the "worst period since the global financial crisis" of 2008. The sheer number of liquidations highlights a severe contraction and instability not seen in recent years. What's even more alarming is that the failures aren't confined to struggling startups or marginal enterprises. Well-established companies, some even boasting awards and accolades, are succumbing to the mounting pressures.
While the precise reasons for this dramatic surge are multifaceted, several factors are likely contributing. Increased operating costs, including rising inflation and supply chain disruptions, are squeezing profit margins. Interest rate hikes, implemented to combat inflation, are making it more expensive for businesses to borrow money, further straining their finances. Consumer spending, a key driver of economic activity, has also been impacted by the rising cost of living, leaving many businesses with dwindling sales.
The ripple effects of these liquidations are far-reaching. Job losses are a significant concern, impacting families and communities nationwide. Suppliers and creditors are also feeling the pinch, as they face potential losses from unpaid debts. The overall sentiment in the business community is one of caution and uncertainty, with many companies reassessing their strategies and tightening their belts in anticipation of further economic headwinds.
The situation demands careful attention and proactive measures to mitigate the damage and support businesses struggling to stay afloat. Economists are urging the government to consider targeted interventions to provide relief and stimulate economic growth. Whether this involves tax breaks, subsidies, or other forms of assistance remains to be seen, but the urgency of the situation is undeniable. The coming months will be crucial in determining whether New Zealand can weather this storm and prevent further business failures.
New Zealand businesses are facing an unprecedented crisis, with liquidations reaching a staggering decade-high, sparking concerns about the overall health of the nation's economy. October alone saw a concerning 300 businesses shutter their doors, signaling a dramatic escalation in financial distress across various sectors.
Experts are painting a grim picture, describing the current climate as the "worst period since the global financial crisis" of 2008. The sheer number of liquidations highlights a severe contraction and instability not seen in recent years. What's even more alarming is that the failures aren't confined to struggling startups or marginal enterprises. Well-established companies, some even boasting awards and accolades, are succumbing to the mounting pressures.
While the precise reasons for this dramatic surge are multifaceted, several factors are likely contributing. Increased operating costs, including rising inflation and supply chain disruptions, are squeezing profit margins. Interest rate hikes, implemented to combat inflation, are making it more expensive for businesses to borrow money, further straining their finances. Consumer spending, a key driver of economic activity, has also been impacted by the rising cost of living, leaving many businesses with dwindling sales.
The ripple effects of these liquidations are far-reaching. Job losses are a significant concern, impacting families and communities nationwide. Suppliers and creditors are also feeling the pinch, as they face potential losses from unpaid debts. The overall sentiment in the business community is one of caution and uncertainty, with many companies reassessing their strategies and tightening their belts in anticipation of further economic headwinds.
The situation demands careful attention and proactive measures to mitigate the damage and support businesses struggling to stay afloat. Economists are urging the government to consider targeted interventions to provide relief and stimulate economic growth. Whether this involves tax breaks, subsidies, or other forms of assistance remains to be seen, but the urgency of the situation is undeniable. The coming months will be crucial in determining whether New Zealand can weather this storm and prevent further business failures.
Category:
Business