Recession persists

AKV: 2024 was a record bankruptcy year in Austria

In its insolvency statistics for 2024, the Alpine Creditors' Association (AKV) speaks of a "record bankruptcy year". The outlook is bleak, as the recession persists.

"As feared, the decline in production and investment during the real estate crisis has spread to the commercial and industrial sectors." Due to the high level of uncertainty, the order situation in industry remains weak, leading to overfilled warehouses and job losses. "The resulting uncertainty on the labor market is in turn leading to restrained consumer behavior and an accelerating economic crisis." This will also be reflected in the number of insolvencies, at least until mid-2025.

Including corporate insolvencies rejected for lack of assets, there were 6768 bankruptcies and 4156 proceedings were opened. An average of 346 insolvency proceedings were opened per month, a good 23% more than the 280 in 2023. There is no easing in sight. According to the AKV census, the number of private bankruptcies opened remained stable at just over 8,800.

The total number of corporate insolvencies opened in 2023, which amounted to 3369, was already exceeded in October last year. Of the 2024 bankruptcies opened, 22,887 employees were directly affected.

Total liabilities at almost 20 billion euros
Liabilities also reached a historic record of 19.55 billion euros. However, liabilities had already amounted to EUR 16.75 billion in 2023.

KTM AG (EUR 2.74 billion in liabilities), Rene Benko (EUR 2.43 billion) and the Benko Family Private Foundation (EUR 2.28 billion) occupy the top negative positions. They are followed by Fisker (1.54 billion), Signa Prime Holding (1.32 billion) and Signa Prime Beteiligung (0.83 billion). In addition, 2024 was characterized by failed restructurings, with Kika/Leiner, Imfarr Beteiligungs GmbH, Windhager Group, Signa Prime Selection and Signa Development Selection AG among the most prominent "victims".