Insolvencies back to pre-crisis level – SALZBURG24
“In the new year, too, we expect bankruptcy figures that will be at the pre-crisis level. There will be a certain catch-up effect,” says Creditreform managing director Gerhard Weinhofer. He warns of uncertainty among companies due to lack of clarity about preliminary corona measures.
Lockdown throws back the economy
“Any new lockdown or uncertainty as to whether a lockdown could come are not good for the economy,” said Weinhofer in an interview with the APA. “Any new lockdown would set us back.” In principle, clear political decisions are called for in order to avoid insecurity in companies as much as possible, says Weinhofer. “The economy thrives on trust in the future.” Overall, there are of course ambiguities due to the omicron variant of the coronavirus.
According to the final figures from Creditreform, there was a total decrease in insolvencies of 3.1 percent to 10,733 bankruptcies in 2021. Of this, 3,076 were corporate (-1 percent) and 7,657 private (-4 percent). There were 2,078 corporate bankruptcies (+12.3 percent) and 7,209 private bankruptcies (-1.7 percent).
Reversal of the bankruptcy trend
In late summer, due to the expiry of corona economic aid, there was a trend reversal towards normal insolvency figures, which gained momentum in the fourth quarter and is now likely to continue, according to Weinhofer. Companies are currently helping, for example payment options for previously deferred taxes and / or duties, which only have to be paid step by step.
Few bankruptcies in the tourism industry
When asked about individual industries, the expert said that “it is gratifying that bankruptcies in tourism and industry are still low. However, he sees a possible danger in the fact that there are construction bankruptcies (+3.4 percent on 612 bankruptcies.” ) and in trade (+4 percent to 516 bankruptcies), because these are labor-intensive industries. “Construction has so far got through the crisis very well and has been resistant. But now delivery bottlenecks and sharply increased prices could mean that fewer and fewer private individuals like house builders could wait with their construction plans. “
The hotel and catering industry (-13.3 percent insolvencies on 379 bankruptcies) were, according to Weinhofer’s words, “practically carried through the crisis” and received as much help as they could. “I doubt whether that can be prolonged.” Therefore, there could be more bankruptcies. Now it is important that the winter season goes as well as possible.
Decline of over 13 percent in Salzburg
The sharpest decline in the number of bankruptcies was recorded in Vorarlberg (-30.1 percent), Carinthia (-23 percent) and Salzburg (-13.3 percent). The highest level of insolvency affected is in the federal capital Vienna with almost 12 insolvencies per 1,000 companies, the lowest in Vorarlberg with fewer than 3 out of 1,000 companies. Across Austria, a good 6 out of 1,000 companies file for bankruptcy.
The three largest bankruptcies after liabilities in 2021 were Eyemaxx Real Estate with 165.2 million euros, Autobank with 121.1 million euros and Odebrecht E&P with 108.4 million euros. Most employees at ASB Graz were affected with 311. More than 100 employees were also affected at Smartcab in Vienna (142), Salzburg Schokolade (140), Bundy Bundy in Vienna (120) and Energetica Industries in Carinthia (112). In total, the insolvency liabilities were 1.1 billion euros and around 8,800 jobs were affected.
The trend reversal has already been achieved in private bankruptcies. In the fourth quarter there was also an increase of 2.4 percent compared to the last quarter before the crisis. Because of the corona crisis, Weinhofer does not necessarily expect an increase in insolvencies. The Creditreform man is much more worried about more bankruptcies due to holistic developments. He mentioned digitalization and groups in society that might not participate in it, or that sharply rising energy prices that hit poorer population groups much more severely than wealthier ones.
(Source: APA)