The number of business failures declined further in 2007 to just under 8 thousand, a decrease by 13 percent relative to 2006. The downward trend is due to the economic growth in recent years. Both the number of individual insolvencies and company liquidations dropped considerably.
Far fewer individual insolvencies in 2007
In 2007, the number of natural persons declared bankrupt (including one-man businesses) went down by 12 percent relative to one year ago. The number of individual insolvencies approximated 4,400 last year. The decrease in individual insolvencies was preceded by a decrease in company liquidations. In 2006, the amount of individual insolvencies was about the same as in 2005, whereas the amount of company liquidations was already declining substantially.
Considerable decrease in company liquidations
Fewer than 3,500 businesses (excluding one-man businesses) were wound up in 2007, the lowest figure since 2001. The number of company liquidations fell by 15 percent relative to 2006 and has continually fallen over the past three years. The number of limited liability company and private company liquidations declined by 13 percent and the number of partnership firm and limited partnership liquidations by 43 percent.
Most substantial decline in sectors hotels and restaurants and transport
The number of liquidations (excluding one-man businesses) of businesses and institutions declined across all sectors last year. With 43 percent, the most substantial decrease was recorded in the sector hotels and restaurants. The number of liquidations in the sector hotels and restaurants rose until 2005, while the overall number of company liquidations was already falling in 2005.
The liquidation rate in the sector transport, storage and communication also dropped markedly by 35 percent in 2007. The rate for companies engaged in road transport went down by 45 percent.