Any minute now, costs will hit companies

In 2021, 71 per cent more companies will report insolvency than the year before. This one should be preparing for a much worse outcome - due to energy, gas or raw material prices.
Last year, over 2.1 thousand cases were registered in courts. insolvency of Polish companies, i.e. both bankruptcy and restructuring proceedings – according to a study by Coface. The current year has started for companies with gigantic growth energy and gas costs, which, combined with already high inflation, means big trouble. And that's not all.
– Since January this year, they have also been facing an increase in the minimum wage. This in turn indirectly affects the increase in other wages, which many entrepreneurs simply cannot afford – says Małgorzata Anisimowicz, president of PMR Restrukturyzacje and qualified restructuring advisor.
A long list of challenges
– Such costs can be covered from surpluses or financial reserves that companies are able to accumulate in good economic times. For many industries, including transport, entertainment, cosmetics and gastronomy, the last dozen or so months have been extremely difficult, and a large part companies very quickly used the cash base – adds Małgorzata Anisimowicz. (…)
There are more industries struggling with problems. Inflation is hitting trade, and the government wants to control stores to see if they are properly fulfilling the VAT reduction on food that comes into effect on February 1. On other sectors will receive the fifth wave of pandemic, omicron infections and related referrals to quarantine. There will be so many of them that even without announcing a lockdown, there will be significantly fewer customers in brick-and-mortar stores or service points. - If inflation does not suddenly slow down and the economy does not stabilize, we can expect another record conducted proceedings – summarizes Małgorzata Anisimowicz.

Publication on the website and in the paper edition of the Rzeczpospolita daily with expert commentary by Małgorzata Anisimowicz, president PMR Restructuring Management Board and qualified restructuring advisor.

This article appeared in the daily newspaper Rzeczpospolita, Paper edition: 20/2022(12175), 25 January 2022. We invite you to read the full version:"Any minute now costs will hit companies

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