Construction crisis with consequences

Where the wave of bankruptcies is now picking up speed

The construction crisis is also leaving its mark on the insolvency statistics.(Bild: Krone KREATIV/Daniel Scharinger (2))

With 238 insolvency proceedings opened, there were almost 90 more than in the first half of 2023, liabilities rose to 206 million euros - the wave of bankruptcies has picked up speed in Upper Austria. What is making it difficult for companies and in which sectors are more businesses going under? We asked an expert from KSV 1870.

The boom during the coronavirus pandemic led to an increase in employees and stocks. With the war in Ukraine, the energy crisis and inflation, demand for sporting goods stuttered, which meant that warehouses remained full, money was tied up and too little was being taken in ...

In a nutshell, this is the situation that led to Texspo Textil- und Sportartikelgroßhandels GmbH being declared bankrupt on June 28. With liabilities amounting to eight million euros, the sportswear specialist from Linz was one of the five largest insolvencies in the first half of the year.

The sad leader here was Syn Trac GmbH from Bad Goisern: The special vehicle manufacturer came to rest with a mountain of debt of 14.5 million euros.

With 14.5 million euros in liabilities, Syn Trac GmbH was responsible for the largest insolvency of the first half of the year in Upper Austria.(Bild: Krone KREATIV/Adobe Stock)

The burden of increased costs remains 
The wave of bankruptcies in Upper Austria between January and June got off to a huge start with companies opening 238 insolvency proceedings and accumulating a total of around 206 million euros in liabilities.

Every time insolvency proceedings are opened, the entrepreneur has the chance to restructure the company and the creditors have the opportunity to receive quota payments in an orderly environment.

Petra Wögerbauer, Leiterin der Region Nord beim KSV 1870

Bild: Starmayr

"The economic situation of many companies is tense", says Petra Wögerbauer from Kreditschutzverband 1870, "the increased costs often cannot be passed on to the end customers to the same extent".

Increase of almost 60 percent
Compared to the first half of 2023, the number of insolvency proceedings opened rose by almost 60 percent. Three sectors are particularly affected: 71 companies in the retail sector went bankrupt, 61 in the construction industry and 51 in the catering sector.

Wögerbauer reckons that the number of company bankruptcies could crack the 700 mark this year - including those cases where no proceedings are opened because the advance payment of 4,000 euros cannot be paid or assets of 4,000 euros are not available.