Sunday, 20 April 2014

No. of corporate bankruptcies up by 46% at 3,692 in 2012

ČTK |
3 January 2013

Prague, Jan 2 (CTK) - A total of 3,692 companies went bust in the Czech Republic last year, 46 percent more year on year, with most bankruptcies declared for natural persons - entrepreneurs, according to an analysis of the firm CCB - Czech Credit Bureau.

Of trading companies, companies in catering and services went bankrupt the most often last year. The fastest growth in the number of bankruptcies of trading companies was registered in construction (+17 percent).

Trading companies in the area of retail and catering went bust in 420 cases and in services in 413 cases. Over 60 percent of all bankruptcies was in these areas.

Natural persons - entrepreneurs took up 64 percent of the number of corporate bankruptcies last year, while in 2011 it was only 50 percent.

Since 2011, the number of those allowed by a court to be cleared from their debts, a procedure like in the case of personal bankruptcies, is growing, said Vera Kamenickova of CCB.

The highest number of corporate bankruptcies last year was in the Moravskoslezsky region (719) and Prague (479) and the lowest number in the Karlovarsky region (76) and Vysocina region (78).

A total of 8,614 proposals for corporate bankruptcy was filed last year, 1,882 more than in 2011. Slightly over a half of the proposals was for trading companies, compared with 67 percent a year earlier.

In December alone, 312 companies were declared bankrupt, 58 fewer than in November but 109 more than in December 2011.

The number of bankruptcy proposals for companies reached 801 in December, 121 fewer than in November but 108 more year on year.

Against November, the number of bankruptcy proposals for trading companies as well as for natural persons - entrepreneurs decreased.

"The fall in the December statistics came by corporate as well as personal bankruptcies and also by proposals for them. A lower number of working days in this month also probably played a role," Kamenickova said.

In December, the highest number of corporate bankruptcies was declared in the Ustecky region (50 cases) and Moravskoslezsky region (48). The Vysocina region registered only six corporate bankruptcies and the Liberecky and Karlovarsky regions 11 cases each.

Corporate bankruptcies:

legal entities natural persons - entrepreneurs total
January 2011 108 73 181
February 101 56 157
March 140 73 213
April 108 75 183
May 136 92 228
June 119 120 239
July 77 88 165
August 87 134 221
September 99 130 229
October 101 108 209
November 90 148 238
December 98 105 203
January 2012 103 123 226
February 129 156 285
March 133 185 318
April 108 158 266
May 109 184 293
June 125 186 311
July 93 147 240
August 117 213 330
September 114 194 308
October 131 269 400
November 114 256 370
December 68 244 312

Source: CCB

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