Fear of Bankruptcy Epidemic Unfounded, Bankruptcies Halved in Ten Years

The anticipated wave of company bankruptcies due to energy shocks has been avoided. The end of the year definitively confirms that this fear was not realized this year. Compared to ten years ago, the number of corporate bankruptcies has halved. This was stated by the company CRIF – Czech Credit Bureau, which monitors insolvencies.

According to turnover, the largest company that declared bankruptcy in November is Vitrablok, s.r.o., which focused on producing and processing glass in Duchcov, colloquially known as buffers. “This is already the second insolvency. The company showed a profit once in the last five years. The year 2021 brought the company problems and a sharp increase in material and energy costs,” says Jan Cikler from CRIF.

Since the beginning of the year, 618 corporate bankruptcies have been declared in the Czech Republic, with 976 insolvency proposals. Sixty-five commercial company bankruptcies and 87 insolvency proposals were submitted in November alone.

In November, transport and storage companies from the Moravian-Silesian region filed for bankruptcy. The highest number of corporate bankruptcies was declared in Prague (28) and the South Moravian Region (9). No corporate bankruptcy was announced in November in the Hradec Králové and Pardubice regions.

According to analysts, the positive trend in the Czech Republic regarding company bankruptcies could be negatively affected by a situation where the number of large companies going bankrupt has increased. In November, there were also 1,113 personal bankruptcies, and 1,273 proposals for personal bankruptcy were submitted. From a long-term perspective, there is also a decline here. Last year, from the beginning to the end of November, bankruptcy was declared for 12,254 people; this year, it was for 11,903 people.