The number of corporate bankruptcies that can be traced back to the coronavirus crisis is increasing. Kreditschutzverband 1870 (KSV) has been investigating bankruptcy since the start of the first lockdown. Accordingly, the Coronavirus crisis is responsible for 14 percent of all corporate bankruptcies. According to KSV, companies’ payment issues increased with each shutdown.
If you look at the number of corporate bankruptcies in Vorarlberg, you can still get the impression that everything in the companies is going pretty smoothly. There have been exactly seven bankruptcy proceedings since the start of the year.
But everything is by no means going smoothly, due to government subsidies, one would only expect Kreditschutzverband 1870 to delay bankruptcies. In addition, the epidemic is playing an increasingly important role as a cause of insolvency.
Most of them survived the first shutdown
14 per cent of all bankruptcies in Austria can actually be traced back to the epidemic and the economic crisis. This also applies to the situation in Vorarlberg, says Regina Nissenson of the KSV in Feldkirch. One can clearly see how most of the companies survived the first shutdown without any major problems, in the second they needed property rights and in the third the insolvency proceedings began.
The number one cause of bankruptcies is still in the area of operations – because companies sell their goods cheaply under competitive pressure, for example. Next year, Nissinson expects true bankruptcies for the Coronavirus. Gastronomy and the hotel industry in particular could be affected.