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The bankruptcy attorney’s office calculated that 1,599 companies were declared bankrupt between January and June 2024. The number of bankruptcies in the same period increased by 273 compared to 2023.
Bankruptcy lawyers say: “Even in July, bankruptcies are still increasing” Teshi Mejara Kaupaletti said.
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Bankruptcy lawyers are also seeing an increase in the number of corporate reorganizations, with figures from January to June 2024 up 14% from a year earlier.
More than during the financial crisis
Statistics Finland The wave of bank fraud was already so severe earlier this year that 3,315 companies filed for bankruptcy in the past 12 months, more than during the financial crisis 15 years ago.
Statistics Finland reminds that the situation was significantly worse during the recession in the early 1990s: the number of bankruptcies initiated per month peaked at more than 700.
Regardless, bankruptcies at the end of last year were set to reach their highest level since 1998.
Last year, bankruptcies increased by nearly 25%, and the pace of bankruptcies does not appear to be slowing down this year. At the beginning of 2024, bankruptcies increased by more than 20%.
Two-year bankruptcy penalty
An average of 260 bankruptcies have been initiated each month this year, according to bankruptcy lawyers. The annual rollover of bankruptcies collected suggests that bankruptcies are accumulating at a rate of about 3,500 a year.
The change for the worse was dramatic. The number of companies initiating bankruptcies remained below 2,000 between 2015 and 2021, but by the end of 2022, the number had exploded.
Customer Information On the other hand, in July it was reported that the number of defaulting consumers exceeded 360,000 for the first time since 2022. Bankruptcies are becoming more common, but the number of defaulting consumers has also increased.
The share of bankruptcies that ended due to lack of funds remained at the same level as before among companies that started bankruptcies. He said two-thirds of bankruptcies ended due to lack of funds. Bar Association.
Waiting in frustration at the credit insurance company
Credit insurance companies familiar with corporate payment behavior After discovery There are fears that many large and well-known companies may go out of business in the near future.
Android Country Manager believes, “It’s only a matter of time” Juhani Laitala.
Atradius knows this because credit insurance companies pay out compensation to companies that have problems. The more compensation they pay out, the more companies go bankrupt.
“The total amount of compensation paid in April was six times the amount paid in March. In July, we paid four times as much as in June,” Lettala said, describing the ugly developments.
“The payroll developments in August also suggest that the bankruptcy cycle is continuing. Furthermore, the monthly turnover that companies tell us has fallen significantly for a year now.”
According to Laitala, the phenomenon of large companies going bankrupt is particularly evident in the consumer trade sector. The bankruptcies of Anttila, Tiimari and Hong Kong are also remembered from the past few years. Stockman’s Clear.
Unpaid bills pile up
Mr Lettala said a “staggering number” of buyer companies had to resort to payment plans under the current circumstances. Beyond small businesses, unpaid bills were piling up elsewhere.
“There are no signs of an upward trend in turnover. Payment difficulties for companies are becoming more common and our research shows that the bankruptcy trend in Finland is strengthening”, Laitala justifies his pessimistic outlook.
Future increases in VAT will exacerbate trade difficulties as it will erode consumers’ purchasing power. union It warned against adding to the increase because simultaneous job losses and slow economic growth are fueling consumer uncertainty.
Garden Shop Plantation File for corporate reorganization to avoid bankruptcy. Those great builders In the woods There is no more construction business because Lehto Asunote, litho tirat and Lehto Korjausrakentaminen GmbH Got bankrupt.
“Information about the transformation of Plantagenet City can hint at the future. Just as it was surprising when Anttila went bankrupt, this time the consumer industry is also in trouble,” Laitala concluded.
Bankruptcy
Bankruptcy is a bankruptcy proceeding whose purpose is to collect the largest possible share of the claims for creditors.
About two-thirds of bankruptcies that began in 2023 ended due to lack of funds. This proportion remains at the level of previous years.
Last year, the list of the largest bankruptcies was dominated by companies in the construction sector. The trade sector also suffered.
Last year was marked by bankruptcies even for large companies in Finland, where small businesses dominate.
Asiakastieto estimates that by 2023, around 300 of the companies declared bankrupt had a turnover of more than 1 million euros.
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