18.3 billion euros:

Record year for bankruptcies: Debts higher than ever!

Signa, KTM and kikaLeiner are just some of the companies that have slipped into insolvency this year.

(Bild: Krone KREATIV/EXPA, Markus Wenzel, Karl Schöndorfer)

In terms of corporate insolvencies, 2024 is a record year: never before have bankrupt companies had such high debts. While liabilities were already higher than ever before in 2023 at 14 billion, this year they rose again by a whopping 30.8% to 18.3 billion euros. The outlook for 2025 is also bleak.

The 18.3 billion debts of companies that went bankrupt are the highest figure in "our economic history", according to Karl-Heinz Götze, head of the insolvency department at the KSV1870 credit protection association.

According to the KSV forecast, 6550 companies are likely to have slipped into bankruptcy by the end of the year. Götze: "That's an increase of around 22% compared to last year and an increase of 30% compared to the pre-coronavirus year of 2019." In terms of figures, only 2015 and 2018 saw more corporate insolvencies.

(Bild: Krone KREATIV/stock.adobe.com)

Fisker was the biggest bankruptcy
The biggest bankruptcy was Graz-based Fisker GmbH, a subsidiary of the American electric vehicle manufacturer, with debts of almost 3.8 billion euros (see chart). "Then the insolvencies were driven by Signa and René Benko's circle - as a sole proprietor or via the private foundation," says Götze. "Then came KTM with 1.8 billion euros, if we only look at the AG. Including the two other companies, we would have two billion euros in liabilities at KTM."

Karl-Heinz Götze, Head of the Insolvency Department at the KSV1870 credit protection association: Highest debt value "in our economic history".

(Bild: Georg Wilke)

Ricardo-José Vybiral, Head of the KSV1870 Group, also presented the current situation of companies. "Only 48% still say that the business situation is very good or good." This is the lowest figure since the coronavirus year 2020. The expert is particularly concerned about industry. Only 46% of companies report a good or very good business situation, with one in five expecting losses this year. Vybiral: "If the industry in our country goes down the drain, we have a problem. And we are seeing a creeping deindustrialization in Austria."

There are also likely to be 6500 to 7000 bankruptcies in 2025
The situation is also bad for restaurateurs, who are suffering from a lack of staff and the fact that guests are coming but spending less. The picture is similar in the retail sector, which is feeling the effects of people's reluctance to spend. The business situation in the construction sector also remains difficult, especially in building construction.

Ricardo-José Vybiral, head of the KSV1870 Group: "If the industry in our country goes down the drain, we have a problem. And we are seeing a creeping deindustrialization in Austria."

(Bild: Georg Wilke)

In any case, the outlook is bleak. Götze predicts 6500 to 7000 insolvencies by 2025. According to Vybiral, it is important that a new government is formed quickly to provide impetus to boost the economy: "What we urgently need is optimism about the future. Companies have clearly told us what they expect from politicians. I don't think there will be any major tax cuts. But I do believe that a lot could be done in terms of regulation to make it easier for companies to concentrate on doing business."