High insolvency figures

Wave of bankruptcies continues to sweep across Austria

The wave of bankruptcies is rolling towards us with full force. 18 percent more companies went bankrupt in Lower Austria in the first quarter of 2024. The outlook for the rest of the year is even more dramatic.

(Bild: Krone Kreativ)

The economic steamroller is currently mercilessly overrunning the construction industry and trade. The Credit Protection Association of 1870 is recording massive increases in company bankruptcies. "From today's perspective, the constant rise in insolvencies will continue - especially in Lower Austria," is the gloomy forecast of one expert. Krone+ editor Sandra Beck talks to "Krone" editor René Denk and expert Brigitte Dostal from KSV1870 about the wave of bankruptcies in Lower Austria and whether other federal states could also face a similar threat.

With an 18% increase in company bankruptcies in the first quarter of 2024, Lower Austria is still far below the national average of 27%. However, experts emphasize that Lower Austria could be hit much harder than Vienna, as it is home to many more manufacturing companies. This is because industrial and production companies in particular have been severely affected by the sharp rise in energy prices and the sharp salary increases following the collective bargaining negotiations.

Failure to achieve sustainable restructuring
"From today's perspective, the constant increase in insolvencies will continue. This would mean that Lower Austria will see 1,250 company bankruptcies this year," says Brigitte Dostal, Head of the Insolvency Department, making a gloomy forecast.

Dostal sees medium-sized companies of this type with 200 to 500 employees as being particularly at risk. The assumed debts of insolvent companies have more than tripled, with the three largest company bankruptcies already accounting for 56 percent of the total amount.

What is the new podcast episode about?
We talk to "Krone" editor René Denk from the editorial office in Lower Austria and head of the insolvency department Brigitte Dostal from Kreditschutzverband von 1870 about the current wave of bankruptcies in Lower Austria and why far worse is feared there despite better current figures.

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