More bankruptcies in May than last year
22:35
In May 79 companies were declared bankrupt, compared to 70 bankruptcies recorded in the corresponding month of 2013, according to research and debt collection firm Euler Hermes Collections. The total revenue of the companies that went under last month stood at PLN 1.7 billion and altogether they employed 4,300 people. Most of the companies that were declared bankrupt were manufacturing firms. There was also a significant number of construction companies and service providers.
In the first five months of 2014, as many as 342 Polish firms were declared bankrupt, 57 fewer than in the same period of the previous year.
The report said that current bankruptcies are still the effect of the poor business conditions seen in previous years. According to Grzegorz Hylewicz, director at Euler Hermes, in light of improving economy creditors have become less flexible and willing to reduce and postpone the collection of their receivables.
“Last year, economic uncertainty contributed to the fact that 20 percent of bankruptcies involved company restructuring. In May of this year, only 10 companies received permission for restructuring, meanwhile eight restructuring processes initiated in previous months failed and turned into company liquidation,” Hylewicz explained.
