The companies operating in various sectors, from construction to automotive trade and from apparel manufacturing to transportation, reported in 2018, the year before going insolvent, a combined turnover of RON1.6 billion, up over 15% compared with 2017. At the opposite end, 16 other firms reported a combined loss of nearly RON300 million. By comparison, in 2017, only five firms were in the red, with the rest of them reporting net profit.
The top 20 largest insolvencies in the first half of 2019 ranks mostly construction companies (three), namely, Delta Antrepriza de Constructii si Montaj 93, Octagon Contracting & Engineering and ACMS Constructii Civile.
Delta ACM, one of the largest Romanian building companies, was established in 1993. In 2018, businessman Florea Diaconu exited Delta ACM 93 and his shares were taken over by three different firms, of which one is held by Bucharest’s district 3 city hall.
In 2018, the latest year for which data are available, Delta ACM’s turnover nearly halved to RON136 million. Also, the company reported a loss of RON170 million, compared with a profit of RON1.8 million in 2017.
Overall, a total 3,200 companies went insolvent in the first half of 2019, fewer by one third than in the same period in 2018, according to Trade Registrar data.
Commerce, the processing industry and constructions are the sectors seeing the most insolvencies.
The top 20 insolvencies in 2019 includes six firms with a turnover of over RON100 million, of which two exceed a turnover of RON200 million.