In August, the number of bankruptcy proposals remained below average in all categories
The number was one third to one half lower than the annual average. This August, 56 company bankruptcies, 552 entrepreneur bankruptcies, and 1,194 personal bankruptcies were declared. In August, the number of bankruptcy proposals increased in all categories while 81 companies, 377 entrepreneurs, and 730 persons proposed bankruptcy. Nevertheless, their number was still significantly lower than the long-term average. This is based on an analysis carried out by CRIF using the data on the www.informaceofirmach.cz server.
In August, the number of company bankruptcies increased month-on-month by 11 and was thus the third lowest this year. The number of company bankruptcy proposals increased month-on-month by 14 and was thus the third lowest since early 2008.
The number of entrepreneur bankruptcies decreased month-on-month by 126 while the number of entrepreneur bankruptcy proposals increased by 171 and was thus almost twice as high as in July. However, it is still the second lowest number of entrepreneur bankruptcy proposals in the last 5 years.
“Following a significant decrease in the number of bankruptcy proposals we recorded in July in all monitored categories, August marked their increase; however, it still amounts to ca. 60% of the long-term average in the last twelve months, i.e. 131 companies and 661 individual entrepreneurs proposed bankruptcy within one month. We can assume the decrease was influenced, among other things, by the amendment of the Insolvency Act effective as of July this year. The upcoming months will show how big the impact will be and whether it will last,” says Věra Kameníčková, analyst for CRIF – Czech Credit Bureau.
Over the past twelve months, 818 companies declared bankruptcy, 77 less than in the previous period and the least since late 2008. Therefore, the trend of the long-term declining number of company bankruptcies continues, although fluctuations in both directions may occur in the individual months. In the past twelve months, 1,576 companies proposed bankruptcies, i.e. 298, or 16%, less than in the previous period. Similarly, the year-on-year number of entrepreneur bankruptcies decreased, specifically by 622 to 6,670 bankruptcies. In the past twelve months, 7,930 entrepreneurs proposed bankruptcies, i.e. 1,285 less than in the previous period.
In August, the biggest number of company bankruptcies was declared in Prague (23) and in the South Moravian Region (13). In other regions, between 1 and 4 company bankruptcies were declared and no company bankruptcy was declared in the Vysočina and South Bohemian Region.
In terms of major sectors, August saw the most company bankruptcies in the trade sector (14), then in construction (10) and in industry (9). There was no bankruptcy declared in the insurance and financial sector and only one in agriculture and mining sector.
In the last twelve months, the biggest number of company bankruptcies was declared in Prague, namely 335, then in the South Moravian Region (104) and in the Moravian-Silesian Region (68). The year-on-year number of company bankruptcies decreased in 11 regions and increased in 3 regions. The Karlovy Vary Region recorded the fastest increase (+ 55%) while the biggest decrease in the number of company bankruptcies was recorded in the Olomouc Region, namely by 29%.
Over the past twelve months, the Karlovy Vary Region (24.8) and the South Bohemian Region (20.6) saw the biggest number of bankruptcies declared following the recalculation to 10,000 companies. In contrast, the lowest number of bankruptcies was declared in the Pilsen Region (13.2) and the Central Bohemian Region (15.4).