Top worst-hit industries in H1 by the number of bankruptcies
The economic crisis has crippled companies’ business by sales drop, tighter lending conditions, dried up cash flow and snowballing bankruptcies.
Retail trade tops the list with the most bankruptcies filed in the first half 2009, namely 2,136 cases or 20.47% of total number of failures, reports French credit insurer Coface, based on the number of cases registered at the national trade register.
Coface report says by the generic term “bankruptcy”, all bankruptcies, liquidation and winding up procedures against Romanian companies have been taken into consideration.
In the first half this year, 10,435 companies were in various stages of insolvency procedure. Compared to year-ago half, the number of companies that filed for bankruptcy climbed 40% from 1,434.
Coface said the sectors most affected by insolvency procedures were retail and wholesale trade and constructions that account for a combined 50% in total number of bankruptcies.
“Large retail groups remain the no1 threat to the collapse of small retailers who deal with a decline in number of clients. It remains to be seen whether consumers will shift to small stores, as people prefer buying less from a store near the house instead of going to a supermarket where they tend to fill the shopping cart”, said Coface.
Retail trade tops the list with the most bankruptcies filed in the first half 2009, namely 2,136 cases or 20.47% of total number of failures, reports French credit insurer Coface, based on the number of cases registered at the national trade register.
Coface report says by the generic term “bankruptcy”, all bankruptcies, liquidation and winding up procedures against Romanian companies have been taken into consideration.
In the first half this year, 10,435 companies were in various stages of insolvency procedure. Compared to year-ago half, the number of companies that filed for bankruptcy climbed 40% from 1,434.
Coface said the sectors most affected by insolvency procedures were retail and wholesale trade and constructions that account for a combined 50% in total number of bankruptcies.
“Large retail groups remain the no1 threat to the collapse of small retailers who deal with a decline in number of clients. It remains to be seen whether consumers will shift to small stores, as people prefer buying less from a store near the house instead of going to a supermarket where they tend to fill the shopping cart”, said Coface.
| Sector | Number of companies in insolvency procedure | Total cases(%) |
| Retail trade | 2,136 | 20.47 |
| Wholesale trade | 2,134 | 20.45 |
| Constructions | 1,328 | 12.73 |
| Transport | 661 | 6.33 |
| Hospitality & Restaurant | 592 | 5.67 |
| Other services to companies | 577 | 5.53 |
| Wood & Paper | 534 | 5.12 |
| Textile | 442 | 4.24 |
| Agriculture | 372 | 3.56 |
| Food & Beverage | 365 | 3.5 |
| Metallurgy | 263 | 2.52 |
| Chemical Industry | 139 | 1.33 |
| Real Estate | 137 | 1.31 |
| Waste Collection | 127 | 1.22 |
| Other Personal Services | 116 | 1.11 |
| Leisure | 101 | 0.97 |
| Automotive | 101 | 0.97 |
| Information Technology | 92 | 0.88 |
| Financial Intermediation | 73 | 0.7 |
| Telecommunication | 73 | 0.7 |
| Mining | 32 | 0.31 |
| Healthcare and Social Assistance | 25 | 0.24 |
| Electricity, Heating, Gaseous Fuel and Water | 15 | 0,14 |
| TOTAL | 10.435 | 100 |