Company bankruptcies endanger around 8,000 jobs in Austria

While the number of insolvency proceedings opened is falling, rejections are exploding due to a lack of assets: 1,654 insolvency applications were rejected in the first half of the year – an increase of 15.42 percent. The reason: These companies did not even have the required assets of 4,000 euros to initiate formal insolvency proceedings. “These companies are too broke to go bankrupt,” say the experts.

If rejections are taken into account, the total insolvencies at 3,659 cases are 1.5 percent higher than the previous year. 77 companies in Austria went bankrupt every week in the first half of the year. The monthly average was 334 procedures – only slightly fewer than in the record years 2024 and 2025.

Renovations are becoming rarer

Particularly alarming: the renovation rate is collapsing. Only 20.95 percent of the completed procedures ended with a restructuring plan – in the previous year it was just under 26 percent. At the same time, the proportion of procedures with a zero quota, in which the creditors come away empty-handed, rose from 27.49 to 33.02 percent.

“Companies increasingly lack the funds to continue operating and to finance a restructuring plan,” says the AKV analysis. A dramatic finding for a country that has previously boasted of renovation rates that are unmatched anywhere in the world.

More than half (57.11 percent) of company bankruptcies were initiated through creditor applications – an indication that entrepreneurs are increasingly ignoring their legal obligation to file an application.

The real estate crisis is easing for now

The total liabilities of company insolvencies fell by 39.46 percent to 4.64 billion euros. After the collapse of numerous real estate groups such as the Signa Group in previous years – with record liabilities of up to 22.3 billion euros in 2024 – the situation with major bankruptcies has eased.

The largest bankruptcy in the first half of the year was Laura Private Foundation with registered claims of 1.7 billion euros, although only around 32 million euros have been recognized so far. More major bankruptcies: the Georg-Coch-Platz Immobilien GmbH (320 million euros) and the LL-resources GmbH (130.7 million euros), which is still fighting for a restructuring plan.

Personal bankruptcies: The second wave is rolling

A new wave is emerging in the private bankruptcy sector. The number of personal bankruptcies rose by 4.8 percent to 4,718 proceedings – the first increase in years. 181 private individuals became bankrupt every week.

The reason: The real estate crisis of previous years is now affecting private individuals. Former shareholders and managing directors of insolvent real estate companies filed for personal bankruptcy – with guarantees and liabilities of up to 100 million euros per person being imposed.

The result: Total liabilities exploded to 830.7 million euros, and average debt shot up to 176,000 euros. For male debtors it is 219,700 euros, more than twice as high as for women (101,000 euros).

“With less media impact than the bankruptcy of René Benko in March 2024, several private bankruptcies were opened about former real estate managers in the first half of 2026,” writes the AKV. Two of these cases would even rank among the top 10 corporate insolvencies by liabilities.

Regional differences

The number of personal bankruptcies increased primarily in… Upper Austria (+16.27 percent) and Lower Austria (+12.76 percent), while Carinthia (-5.45 percent) and Wien (-2.09 percent) recorded declines.

More than 9,000 cases of private insolvency are expected – this would mean that the pre-Corona level of 2019 would be reached again.

“The weak economic development and the volatile global political situation do not suggest any short-term relief,” warns the AKV. The recession of the past few years is now affecting the private bankruptcy sector with a delay.

After all, around two thirds (66.54 percent) of private bankruptcies end with a completed payment plan – a sign that many of those affected are given a second chance.