According to a forecast by the credit protection association KSV1870, the number of bankruptcies in the first three quarters of this year has almost doubled compared to the same period last year. They rose 92 percent to 3,482 cases. Estimated liabilities rose by 88 percent to about 1.4 billion euros, the number of affected employees to 9,800 (plus 72 percent). There were 6,209 private bankruptcies, 24 percent more – with average debts of 107,000 euros per bankruptcy.
According to Karl-Heinz Götze of KSV, the list of challenges companies have been dealing with for months has not gotten any shorter in the summer months. Despite this, corporate insolvencies are still 9 percent below last year’s relative value for Corona 2019. However, “Ongoing cost explosions, severe supply problems and the laborious search for staff are just some of the factors why the overall economic situation has deteriorated recently,” he said. Gotze.
Negative attitude of the company
Expectations for the coming months have been muted. About half of the companies have a negative view of the end of the year.
The KSV finds it worrying that 40 percent of all corporate bankruptcies this year were shelved due to lack of cost recovery. Last year it was 32 percent. The increase is due to the fact that many companies had to file for bankruptcy much earlier, Götze said. However, the continuation of the operation would use up the very last resources, making rehabilitation no longer possible. This leads to more job losses and the creditors overlook.
Trade, construction and tourism especially affected
According to KSV, (car) trade, construction and tourism are the drivers of bankruptcies. In total, there were an average of 13 bankruptcies per day. The sharp increase in total debt is partly due to the bankruptcy of the CPI Group (debt: approximately 220 million euros) and the fall of Polytechnik Luft- und Feuerungstechnik GmbH (66.3 million euros).
23 personal bankruptcies per day
In private bankruptcies there were 23 openings per day. Here too, total liabilities have increased. The amount increased by more than 16 percent to a total of about 665 million euros.
“Explosive costs in all situations”
According to Götze, people’s wallets in Austria are currently being heavily taxed by inflation – higher energy costs, price increases in supermarkets. The increase is not surprising. But here too the pre-corona level (7174 cases) has not yet been reached, although the number of private bankruptcies opened has continuously increased since the entry into force of the insolvency amendment (Restructuring and Insolvency Directive) in July 2021.
“In private bankruptcy, the current increase is mainly due to the previous year’s insolvency change, which brought significant relief, such as a shorter debt restructuring period for debtors. But if you look a bit into the future, the exploding costs will also have an impact on almost every situation in life,” says Götze.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
