90 companies went bankrupt this year

Burgenland is the sad leader in insolvencies

This year, 300 company bankruptcies are expected in Burgenland.(Bild: (c) www.VIENNAREPORT.at)

In the first months of 2024, 90 companies had to close down. With an increase of 84 percent in company insolvencies, Burgenland recorded the highest rise in Austria.

The projection of the Kreditschutzverband 1870 (KSV) paints a gloomy picture for 2024. "From today's perspective, the significant increase in insolvencies in Burgenland is expected to continue. In the context of a gradual increase in insolvency figures, this would mean around 300 company bankruptcies by the end of the year," says Brigitte Dostal, Head of KSV Insolvency for Vienna, Lower Austria and Burgenland.

Parallel to the 90 company bankruptcies in the first few months of the year, the estimated liabilities have increased significantly to around 12 million euros, which corresponds to an increase of 50% compared to the previous year.

Higher energy prices, fewer orders
According to KSV, the main reason for the rising insolvency figures is that companies continue to face numerous challenges in the form of high energy prices, falling orders and shrinking purchasing power. "The pressure on companies is increasing," says Dostal.

There has also been a drastic increase of almost 212% in the number of insolvencies that were rejected due to a lack of assets to cover costs. These are predominantly companies that are completely without assets and cannot even cover the costs of 4000 euros for opening insolvency proceedings.

Construction industry in 1st place
As in the previous year, the most frequent insolvency cases (14) occurred in the construction industry. The retail sector and the transportation industry also recorded a high increase, with 10 insolvencies each in the first quarter of 2024.