An explanation for this is the lockdown in Romania between March 16-May 15, so many sectors were either fully or partly frozen. To offset the situation, the government injected money into the economy and took such steps as paying for furlough to protect companies from insolvency or bankruptcy.
The steps produced effects so only 72 companies went insolvent in April, compared with 553 in April 2019. After companies resumed operations, even though partially, the number of insolvencies skyrocketed.
The companies that went insolvent include fashion retailer Steilmann and Bake Expert, the operator of the bakery chain Casa Brutarilor.
Companies either had no or too little revenue for several months, which rendered them unable to cover costs, so they chose insolvency.
(English version by Loredana Fratila-Cristescu)