Insolvencies

Bankruptcy vulture circles over companies

Those responsible in the building construction and ancillary building trades in particular are struggling.

(Bild: P. Huber)

In the first three quarters, the number of company insolvencies rose by a whopping 58.8% compared to 2023. The construction industry, retail and gastronomy are particularly affected.

A large number of domestic companies are still struggling massively with the business situation and a lack of income. This is partly due to the fact that private consumption and exports have recently declined. "The economic pressure has not eased during the summer months. Businesses are very often at their limits and are increasingly having to ask themselves whether they can survive. This will be no different in the coming months," explains Regina Nesensohn, Head of KSV1870 Feldkirch. At the end of the third quarter of 2024, Vorarlberg recorded 127 company insolvencies, which corresponds to an increase of 58.8 percent.

Corporate insolvency
After a slight easing recently, the number of unopened insolvency cases is rising again. At the end of the third quarter of 2024, 46 corporate insolvencies were not opened due to a lack of assets. The number is alarming because it is not possible to subject the companies concerned to an orderly insolvency process. As a rule, creditors do not see a penny. "The fact that not even 4000 euros can be raised to cover the court costs in these cases is an indictment of the companies concerned and a flaw in the legal system," says Regina Nesensohn.

The construction sector has recorded the most company bankruptcies to date (24 cases). This is closely followed by retail (21 cases) and gastronomy (20 cases). The losses for creditors have risen sharply compared to the previous year. The increase of 153 percent is mainly due to the three million bankruptcies (König, Inside96 and Fleco).

Fewer private bankruptcies
Despite persistently high economic burdens, the number of debt settlement proceedings opened in Vorarlberg fell by 9 percent. As the latest KSV1870 extrapolation shows, 323 private bankruptcies were opened in the first nine months of the year. "In view of the latest developments, we can speak of a certain financial resilience among people. It is difficult to predict how long this will last, but in all likelihood many people's savings will be used up sooner rather than later," explains Regina Nesensohn, Head of KSV1870 Feldkirch. It is therefore very likely that the number of personal bankruptcies will rise sharply in the medium term. Those affected should act as quickly as possible.

The debt settlement proceedings that have been opened are particularly striking: Liabilities have risen by 16.7 percent in Vorarlberg compared to the same period last year. As a result, the average amount of debt per debtor has also increased from 87,000 euros to 108,400 euros.