Global insolvencies: Record high failures of major companies | Article – HSBC VisionGo

Our latest monitoring points to record levels in the number of major insolvencies and the severity of major insolvencies.

On top of the upward trend in business insolvencies, we identify a record level of failures of large companies - those with over EUR50mn of turnover with 342 major insolvencies totaling more than EUR205bn in turnover in 2019.

The increase in major failures accelerated in the last quarter of 2019 with a record number of cases (94) and a new high in terms of severity (their combined turnover increased +16% y/y to EUR60.4bn).

North America (+29 cases) was the key contributor to the global rebound in major insolvencies, along with Asia (+5). Yet, Western Europe (-9) remained the most impacted region with 133 major insolvencies  compared to 96 cases in Asia).

The hotspots were retail and services in Western Europe, energy and retail in North America and construction in Asia.

What does this mean for companies? A higher risk of domino effects with adverse implications on fragile providers along supply chains.

 For the full report, please download it here.

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