Retailers and property developers are experiencing a wave of bankruptcy.
In Austria, the economic landscape is facing challenging times, as a surge in company bankruptcies and insolvencies has been reported. According to Karl-Heinz Götze, these difficulties are largely due to economic uncertainty, high inflation, and rising costs.
The construction industry has seen a three percent decrease, but a surprising 60 percent increase has been observed among real estate developers. However, the wholesale and automotive trade sectors appear to be less affected. The retail industry, on the other hand, has the highest number of bankruptcies, with 921 cases, marking a ten percent increase.
The retail sector's struggles are not limited to Austria, as the largest insolvencies of 2025 include SIGNA Prime Capital Invest GmbH (870 million EUR), Herkules Holding GmbH (710 million EUR), and Herkules Finance Holding GmbH (257 million EUR). These insolvencies have primarily impacted Vienna and Innsbruck/Tyrol, with the trade, construction, and hospitality sectors being the most affected.
The construction sector follows closely with 734 bankruptcies, and the transport industry has also experienced a significant loss, with a million-dollar bankruptcy reported. The number of company bankruptcies in Austria is expected to rise to around 7,000 cases in 2025, an increase of more than six percent from the previous year.
Private consumption is decreasing in Austria, and this trend is reflected in the number of job losses due to bankruptcies. A total of 15,200 people have lost their jobs due to bankruptcies, a decrease of 19.1 percent. The shortage of personnel in Austria is causing many companies to turn down orders and lose money.
Notable bankruptcies include a well-known mattress manufacturer and an ambitious metal processor in Austria. In the tourism industry, there is no net gain or loss. Despite these challenges, the economic situation of companies remains tense due to high inflation, high energy and material costs, rising wage costs, uncertainty, waning private consumption, and postponed investments.
The good news is that liabilities have halved to 6.4 billion euros compared to the same period last year. However, the ongoing financial crisis and the risks of a third consecutive recession continue to cast a shadow over Austria's economy. It is crucial for businesses and policymakers to work together to navigate these challenging times and find solutions to stabilise the economy.
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