The reasons are different, the obligations are high. In the first three quarters, 211 companies in Salzburg have already gone bankrupt. Credit protectors are seeing an alarming increase in the number of cases in which creditors walk away empty-handed.
Recession, geopolitical risks and other reasons were cited by Salzburg companies that have gone bankrupt in Salzburg since the beginning of the year. According to credit protection association KSV1870, the number of bankruptcies in the first three quarters amounted to 244. The regional manager from Salzburg speaks of a modest increase of 15.6 percent compared to the same period last year.
The number of cases before the corona pandemic (219,366 cases) will probably not be reached this year. The KSV1870 in Salzburg has noticed an alarming development in the bankruptcy cases that are pending in court and have not even been opened yet. Recently, this affected every third case in Austria, but in Salzburg 39 percent of bankruptcies.
Verification is not possible in many cases
“That is an increase of twenty percent. The causes of the bankruptcy and the business operations, including the associated responsibilities, are not investigated,” says country manager Aliki Bellou. In these cases, creditors are left empty-handed, criticizes the credit protector.
With a total of around 180 million euros in debt, the largest corporate bankruptcy in the state of Salzburg this year has hit the Windhager Group. They were followed by Weiss GmbH and Haas und Sohn Ofentechnik GmbH with debts of 14.8 and 11.5 million euros.
The drivers of insolvency this year were trade, construction and tourism/gastronomy.
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.
