Insolvency and restructuring: Poland summary 2024

In line with trends in many other EU countries, 2024 marked another increase in the number of corporate insolvencies in Poland. According to a recent report by MGBI, 436 companies declared bankruptcy in 2024, representing a 10.7% increase from 2023.

From an industry perspective, the manufacturing sector was the hardest hit, with 106 firms declaring bankruptcy in 2024, a 14% rise from the previous year. Retail followed closely behind, with 94 companies going bankrupt, an increase over 2023 and 2022 figures. The construction industry also saw an uptick in insolvencies, with 61 bankruptcies in 2024 compared to 50 in 2023. 

The 2024 data highlights that businesses operating for 5 to 10 years were particularly vulnerable, accounting for 28% of total insolvencies – an increase of six percentage points compared to the previous year. In contrast, companies with a market presence exceeding 20 years showed greater resilience, as their share of bankruptcies declined to 23% from 28% in 2023. Overall, firms aged between 5 and 15 years accounted for 51% of all insolvencies.

Restructuring on the rise

Amidst the growing number of insolvencies, far more businesses opted for restructuring as a means of avoiding bankruptcy. In 2024, 4,457 firms initiated restructuring proceedings, marking a 7.4% increase from 2023 and an impressive 102.6% surge compared to 2022. The total number of restructuring applications filed in the National Debtors Register reached 3,442, reflecting a 23.6% increase from the previous year. 

The efficiency of the restructuring process also improved, with the average time to commence proceedings dropping to 54.2 days from 64 days in 2023. The accessibility and effectiveness of restructuring proceedings is one of the reasons for their rising popularity. By comparison, only 20% of all bankruptcy petitions filed in 2024 resulted in insolvency proceedings being initiated, mirroring the rate from the previous year. The remaining applications were either dismissed or are still awaiting a decision. The average time between filing for bankruptcy and the official declaration was recorded at 117.6 days.

Consumer bankruptcies

The number of consumer bankruptcies remained high in 2024, with 21,169 individuals declaring personal insolvency. This marks the second consecutive year where the number of personal bankruptcies exceeded 20,000.

Conclusion

The trends observed in 2024 suggest a continued challenging environment for Polish businesses, particularly in the manufacturing, retail, and construction sectors. While insolvencies continue to rise, the growing reliance on restructuring procedures indicates that more companies are seeking ways to navigate financial distress without outright bankruptcy.

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Bartosz is a trusted advisor for his clients, supporting companies with know-how in new tech, IP, and cybersecurity together with his expertise in resolving disputes and business restructuring.