Number of Czech firms going bust grows by 36 to 1,379 in 2013

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published: 06.01.2014, 13:03 | updated: 06.01.2014 16:42:35

Prague - The number of companies declared bankrupt grew by 36 year-on-year to 1,379 in the Czech Republic last year, while the number of self-employed people going bust rose by 2,049 to 4,417, a study drawn up by company CRIF has shown.

A total of 80 percent of bankruptcies resulted into debt relief in 2013.

Despite a record-high number of corporate bankruptcy petitions lodged in December, the number of the petitions dropped by 63 compared with 2012 to 4,538 last year.

The number of bankruptcy petitions filed by the self-employed increased by 2,865 year-on-year to 6,878 last year.

The number of bankruptcies decreased in six regions of the Czech Republic last year. The fastest fall (20 percent) was recorded in the Ustecky region in northern Bohemia. On the other hand, the number of bankruptcies showed the fastest growth (48 percent) in the Liberecky region in northern Bohemia.

The highest number of self-employed people declared bankrupt (685) was recorded in the Moravskoslezsky region, northern Moravia, last year, followed by the Plzensky region, western Bohemia, and Ustecky region (526).

On the other hand, the number of bankruptcies of the self-employed was the lowest in the Jihomoravsky region in southern Moravia (77) and in the capital city Prague (90).

The number of bankruptcies grew the fastest in the Karlovarsky and Plzensky regions in western Bohemia, while the slowest increase was recorded in the Moravskoslezsky and Olomoucky regions in northern Moravia.

In December alone, a total of 89 companies were declared bankrupt, which was 41 fewer than in the previous month. The number of bankruptcies of self-employed people rose by six month-on-month to 426 in December.

A total of 568 business bankruptcy petitions were lodged in December, which is 169 more than in November and the highest monthly number since January 2008.

In contrast, the number of self-employed bankruptcy petitions dropped by 97 month-on-month to 644 in December.

Number of declared bankruptcies:

legal entitiesself-employedtotal
January 2012103123226
February129156285
March133185318
April108158266
May109184293
June125186311
July93147240
August117213330
September114194308
October131269400
November114256370
December68244312
January 2013130287417
February121322443
March120341461
April131322453
May115393508
June109345454
July112374486
August93383476
September117418535
October112386498
November130420550
December89426515

Source: CRIF Record 2,224 firms in CR are declared bankrupt in 2013

A total of 2,224 companies in the Czech Republic were declared bankrupt in 2013, 325 more than in 2012 and the highest number since 2008, company Creditreform told CTK today.

"Since January 2008, when the new Insolvency Act took effect, the number of bankruptcies has been growing. Last year it was for the first time that the number of declared bankruptcies exceeded 2,000," Creditreform said.

The number of legal entities in bankruptcy grew by 17 percent year-on-year. The number of self-employed persons in bankruptcy rose by 54 percent to 849.

The percentage of self-employed persons in the total number of businesses in bankruptcy last year increased to 38 from 29 percent.

Expectations for 2014 are slightly optimistic, Creditreform said.

"Factors such as a decrease of energy prices and phone fees, low inflation, growth of exports and the end of the government restrictive policy could stabilise the economy and we will probably see a moderate revival. As regards business insolvencies, we expect a slightly growing tendency for 2014, particularly in the segment of non-active self-employed persons," Creditreform said.

No. of declared bankruptcies:

20002,491
20012,473
20022,155
20031,728
20041,411
20051,236
20061,245
20071,115
2008*1,141
2009*1,553
2010*1,601
2011*1,778
2012*1,899
2013*2,224

* In 2008, the new Insolvency Act took effect. Under its new methodology, bankruptcy statistics no longer include insolvency petitions that were turned down immediately due to lack of assets.

Author:
www.ctk.cz

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