In 2024, the Czech Republic experienced 686 company bankruptcies, representing a 5% rise from the previous year.
Alongside this, 1,082 bankruptcy filings were made, a 3% increase compared to 2023. December saw the fewest bankruptcies of the year, with only 48 companies declaring insolvency, and 75 filings being submitted. This total was on par with the number of bankruptcies in 2022, although the number of bankruptcies peaked higher in 2021 at 730 cases, according to CRIF analyst Vera Kameničkova.
On average, 16 out of every 10,000 active businesses filed for bankruptcy last year, a rate consistent with the previous year. Despite a gradual decrease in interest rates, corporate loans rose by 8% year-over-year, while deposits saw a 5% increase. Furthermore, the proportion of unpaid loans decreased, indicating improvements in companies’ repayment behaviors, Kameničkova pointed out.
The highest concentration of bankruptcies was recorded in Prague, with 318 cases, followed by the South Moravian Region at 100 and the Moravian-Silesian Region at 55. However, Prague’s bankruptcy rate dropped by 26% from 2023, while the South Moravian Region saw a 25% increase. In terms of industries, retail led with 151 bankruptcies, followed by manufacturing with 108 and real estate with 79. The transportation and storage sector reported the highest bankruptcy rate per 10,000 companies, with 23 cases. Manufacturing had a rate of 18 bankruptcies per 10,000.
On the other hand, sectors such as education, healthcare, social work, and information and communications saw the lowest bankruptcy rates, with the number of bankruptcies in these areas declining by 20% compared to 2023.
Notably, bankruptcies in the administrative and support activities sector, which includes services like rental and leasing, employment agencies, and travel agencies, surged by 74% in 2024.
