The past year saw another increase in the number of bankruptcies among Polish businesses. According to the latest analysis by MGBI, courts in 2024 issued 436 bankruptcy declarations for companies—over 10% more than in 2023 and nearly 30% more than in 2022. The most affected sectors were industrial processing, construction, and retail.
Additionally, following a record rise in the number of restructuring proceedings initiated in 2023, 2024 saw another increase. This highlights the growing interest among entrepreneurs in using restructuring as a tool to save their businesses and counter insolvency.
A Return to 2020?
Since the pandemic-stricken 2020, when 547 companies ceased operations, the annual number of declared bankruptcies had not surpassed 400. Subsequent years recorded 399 bankruptcies in 2021, 339 in 2022, and 394 in 2023. However, the increase in 2024 to 436 bankruptcies brings the figures closer to those seen in 2020, marking 2024 as an exceptionally difficult year for Polish businesses.
“It’s challenging to compare 2024 with 2020, which saw a wave of bankruptcies due to the pandemic. However, last year’s figures are exceptionally high. This outcome was not entirely surprising, considering the number of entrepreneurs we engaged with regarding restructuring last year. The list of risk factors kept growing, with declining demand, rising labor costs—including two separate minimum wage hikes—and challenges in obtaining external financing or managing energy prices being universal concerns across industries. Additionally, industry-specific challenges, particularly in transportation, construction, and retail, compounded the difficulties,” explains Sylwia Szerenos, a qualified restructuring advisor at Continuum Restrukturyzacje Sp. z o.o.
Continuing Restructuring Boom
Interest in restructuring among businesses continued its upward trajectory in 2024. While 2,200 restructuring proceedings were initiated in 2022, this number surged to 4,149 in 2023 and 4,457 in 2024, representing a year-over-year increase of 7%.
Hardest-Hit Sectors
An analysis of companies that declared bankruptcy last year identifies three dominant sectors. The industrial processing sector led with 106 bankruptcies, followed by wholesale and retail trade (94), and construction (61).
“This trend aligns closely with the restructuring cases we handled last year. It’s also worth noting that the transportation sector ranked fourth in MGBI’s bankruptcy statistics. In fact, this sector dominated the list of clients in our office in 2024,” adds Sylwia Szerenos of Continuum Restrukturyzacje Sp. z o.o.
When examining companies that initiated restructuring proceedings, there was a notable shift compared to the bankruptcy statistics. Retail emerged as the leader with 941 restructuring cases, followed by construction (688) and industrial processing (646).
Source: Manager Plus