RSS
Services rank second in top insolvencies after opening procedures for RADET and Hidroserv (analysis)
The insolvency of RADET and Hidroserv determined the advance of services to the second place in the top of insolvencies in Romania, after industry, which represents 55% of total, according to an analysis made by the Insolvency House Transylvania (CITR).
In the first half of the year, services represented 18% of insolvencies in Romania, according to the value of immobilised shares and ranked third in the top next to real estate and when RADET and Hidroserv procedures were initiated this sector accounted for 22% of insolvencies, after industry which represents 55% of total. ELCEN insolvency represents 44% of the industry market in insolvency.
“We expect that the insolvency of three large companies (RADET, Hidroserv and ELCEN) will modify the top of insolvencies in 2016. Industry continues to rank first, more than half of the market in insolvency now, but services follow. The impact of insolvent companies in economy is no longer given by their number but by the dimension of every business: business figure, value of immobilised shares, number of employees, suppliers,” said Andreea Cionca Anghelof, managing partner CITR.
Besides RADET and Hidroserv, 44 companies with impact in economy are now in insolvency in the service sector. They cumulate over 2.284 billion lei in immobilised shares, 11,588 employees, business figure over 2.518 billion lei and carry out their activities in Bucharest (40.9%), Muntenia (16.3%), centre of the country (16.3%), Moldova (11.36%), Oltenia (6.81%), Crisana (6.81%), Dobrogea (4.54%) and Banat (2.27%).
The 44 companies supply intermediate services (in trade with cars, industrial equipment, ships and airplanes, in the trade with fuel, ore, metals and chemical products for industry), IT (data processing, web page administration and other activities), installations (electric, sanitary, heating and air conditioning), consulting (for business and management, in IT), transport (rentals and leasing, transport of goods, car maintenance and repairs), recycling (recovering sorted recycled materials), steam and air conditioning supply, packing, gambling and betting, to which restaurants and hotels are added.
According to the analysis made by CITR, 29 impact companies in the field of services have applied for insolvency.
Together they will cumulate immobilised shares of 670 million lei, 2,844 employees and a business figure of 285 million lei.
CITR is part CITR Group, the first group of firms in Romania specialised in personalised remedies for companies with economic problems.