Record number of bankruptcies in July – the highest in 10 years.

Building industry is affected by the crisis. One-third of all bankruptcies in July took place in the building industry.

July witnessed record numbers of company bankruptcies. 98 companies bankrupted at that time – the greatest number in 10 years. One third of all bankruptcies (33 companies) happened within the building industry. The problems of that sector influenced also manufacturing and wholesale companies.

Seven out of sixteen manufacturing companies which bankrupted in July were building companies. Most bankruptcies took place in the south, in Silesia, Lower Silesia, Subcarpathia, and Lesser Poland. The problem touches mostly road and infrastructure (such as pipelines, distribution and transmission networks) construction specialists as well as companies dealing with finishing works.

The problem of the building industry affects also wholesale companies. Twenty of them bankrupted in July, out of which nine supplied the building sector, and three provided products for home furnishing. It has been a very long time since we have seen twenty bankruptcies of wholesale companies in one month. The greatest number of wholesale companies, seven, bankrupted in Masovian Voivodeship – says Grzegorz Błachnio, expert Euler Hermes. Transport sector also struggles with bankruptcies.

Experts believe that loss of financial liquidity is the main reason of such a great number of bankruptcies. It is very rare that management petitions for bankruptcy knowing about forthcoming problems such as the loss of the main client. Sometimes management decides to declare bankruptcy in the interests of the creditors' security – explains Grzegorz Błachnio.


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