Concerns about a potential surge in company bankruptcies triggered by energy shocks have proven unfounded as the year comes to a close. Recent data affirms that the anticipated wave of insolvencies did not materialize in 2023. Notably, the number of corporate bankruptcies in the Czech Republic has halved compared to a decade ago, signaling a more resilient business landscape.

According to insights from CRIF – Czech Credit Bureau, a company specializing in insolvency monitoring, the largest company to declare bankruptcy in November based on turnover was Vitrablok, s.r.o., a glass production and processing company in Duchcov. This marked the second insolvency for the company, which faced challenges in 2021, including a sharp increase in material and energy costs.

Throughout the year, a total of 618 corporate bankruptcies were declared in the Czech Republic, accompanied by 976 insolvency proposals. November alone witnessed 65 commercial company bankruptcies and 87 insolvency proposals. In a regional breakdown, transport and storage companies in the Moravian-Silesian region accounted for a notable portion of November’s bankruptcies.

Prague recorded the highest number of corporate bankruptcies in November with 28 cases, followed by the South Moravian Region with nine cases. Conversely, the Hradec Králové and Pardubice regions reported no corporate bankruptcies during the same period.

While the Czech Republic has seen a positive trend in terms of corporate bankruptcies, analysts caution that an increase in the number of large companies going bankrupt could potentially impact this trend negatively. In November, 1,113 personal bankruptcies were recorded, with 1,273 proposals for personal bankruptcy submitted. Despite this, there is a long-term decline in personal bankruptcies, with 11,903 individuals declared bankrupt from the beginning of the year to November, compared to 12,254 in the same period last year. The data suggests a degree of economic resilience amid various challenges.

Article by Prague Forum