Insolvency numbers explode: 6.1% more companies bankruptcy in Austria!

Insolvency numbers explode: 6.1% more companies bankruptcy in Austria!

In the first half of 2025, Austria recorded a worrying increase in corporate bankruptcies. According to [vienna.at] (https://www.vienna.at/plitewelle-reis-nicht-nicht-nicht-MeMer- Mehr--sind-sind-insolvent/9484442), a total of around 3,500 companies registered bankruptcy, which corresponds to an increase of 6.1 percent compared to the previous year. It is particularly alarming that 1,325 of these cases could not be opened due to the lack of cost recovery. The official number of bankruptcies illustrates the critical situation of the economy in the country.

A review of the first quarter of 2025 shows that the number of corporate bankruptcies was also high. The credit protection association of 1870 (KSV1870) reported 1,795 bankruptcy, which corresponds to an increase of 6.3 percent compared to the previous year. This can be attributed in particular to the main bankruptcy drivers in retail, construction industry as well as the catering and accommodation.

Development of the liabilities and large insolvencies

The liabilities, i.e. the open debts of the affected companies, dropped by almost 57 percent to 4.8 billion euros in the first half of 2025. This is contrasting to the preliminary liabilities of 2.6 billion euros, which were recorded in the first quarter of 2025, due to 24 large insolvencies with liabilities over ten million euros. Over the entire year 2025, the KSV1870 expects 6,500 to 7,000 corporate bankruptcies, which underlines the urgency of an economic strength.

In the first half of 2025 there was only one large bankruptcy in Austria - Hercules Holding GmbH. In the previous year, however, there were five of which four belonged to the Signa Group. This indicates that the drastic reduction of these large insolvencies plays an essential role in the decline in liabilities.

affected industries and persons

Almost half of the bankruptcies in the first half of the year come from the areas of trade, construction and gastronomy. The retailer reported 324 cases, which is an increase of 11 percent. The construction industry recorded 552 bankruptcies with a decline of 4.3 percent, while the catering trade had an increase of 5.2 percent with 422 cases. The effects on the employees are also significant, with an estimated 10,500 employees and 20,000 creditors who are affected by bankruptcies in the first six months.

In the area of ​​private bankruptcies, 4,526 people requested a debt regulation procedure, which corresponds to a decline of 1.6 percent compared to the previous year. However, the liabilities in this segment increase by 5.4 percent to 567 million euros, with an average debt per debtor, which has grown to 125,000 euros.

The regional differences are striking: in Vienna, private bankruptcies rose by 6.1 percent, while the liabilities increased by 52 percent. In contrast, Styria recorded a decline in private bankruptcies and liabilities by around 15 percent each. Tyrol and Burgenland also show varied developments, with Tyrol an increase in liabilities by 86.1 percent and Burgenland was able to increase 63.6 percent despite fewer procedures.

The current developments of the bankruptcies in Austria are alarming and show that a sustainable economic solution is necessary. According to [Statistics Austria] (https://www.statistics.at/statistiken/ industrie-bau-hand-hand-fezt-handsdemography/ Registrations-und-insolven), the statistics on corporate insolvencies are based on judicial procedures, which underlines the seriousness and relevance of the data. It remains to be seen which measures the government will take to cope with this crisis and to stabilize the economy.