A CITR survey on companies that have gone insolvent over the past two years shows that 49% of them entered insolvency due to high debts. Mismanagement and decreasing consumer demand affected 43% of these companies each.
In most cases, insolvency is not triggered by only one problem, but by two or three factors, Rudolf Vizental, managing partner at CITR, said in a statement.
According to Vizental, 90% of companies filed for insolvency 18 months after problems became obvious, which considerably reduces companies’ chances to get back on track.
Since the beginning of the crisis in 2008, over 90,000 firms went insolvent in Romania, according to Trade Registry data, most of them operating in the construction sector, trade sector and the processing industry.