1,706 Viennese companies had to file for bankruptcy in 2022 – but not all through their own fault, according to an evaluation by the credit protection association.
Certain industries are not having an easy time right now. Above all, the gastronomy. First the countless lockdowns, then the 3G regulations and now as a bonus inflation that causes people to consume less.
Low turnover, poor control
No wonder then that 1,706 companies had to file for bankruptcy in Vienna alone last year. The Credit Protection Association 1870 analyzed the causes of this.
While operational reasons such as planning and sales weakness and poor control are still among the most common reasons for insolvency, uncontrollable circumstances such as Corona in particular are catching up.
Pandemic more often the reason
While at the start of the pandemic, the global crisis was rarely the main cause of business insolvencies in Austria, it was the main factor in about one in four bankruptcies in the previous year, in Vienna it was 21 percent, in Salzburg and Vorarlberg even 34 and 33 percent.
Many affected
It wasn’t until January that Habibi and Hawara had to file for bankruptcy and close four of the five locations. Bankruptcy proceedings were also opened against the traditional Café Ritter in Ottakring at the beginning of this year. The Café Halle in the MuseumsQuartier in the 7th arrondissement also has debts of 270,000 euros. The reason: significant sales losses during the pandemic.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
