Many construction companies have gone bankrupt this year. During the summer, the pace has only accelerated.
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Construction industry the predicament has clearly deepened during the summer. This is clear from the information obtained by HS from Asiakastieto.
HS Visio reported in June Distress gripped the industry – in the news titled that between January and mid-June, around 270 companies in the construction sector had already been declared bankrupt.
During the summer, the pace has accelerated a little. By Monday, August 28, almost 390 companies had already been declared bankrupt. The small house manufacturer is not included in Asiakastieto’s bankruptcy listing Jukkatalo, whose bankruptcy was announced on Monday.
The number is large, because for example, between 2019 and 2022, around 250 bankruptcy applications were filed each year alone.
Jukkatalo is so far clearly the biggest failed company in the construction industry. The company’s turnover last year was approximately EUR 95 million. The company had more than 200 employees last year. In addition, in addition to our own personnel, around 500 people worked at Jukkatalo’s sites last year.
According to Jukkatalo’s bankruptcy filing, which became public on Monday, it owed at least 2.3 million euros. The company’s biggest creditor is the Tax Administration.
Jukkatalo in addition, other larger construction companies have already collapsed this year. The second largest bankrupt company after Jukkatalo is R4 Korjausurakointi. In 2021, the company still had a turnover of more than 38 million euros. For last year, its financial statement information is not available.
R4 Repair contracting was declared bankrupt on Monday, June 26. According to the company’s bankruptcy application, the company is over-indebted and insolvent.
R4 Repair contracting owes more to Jukkatalo. Before bankruptcy, it accumulated debts of millions of euros. For example, the company owed approximately 1.9 million euros to Danske Bank, approximately 2 million euros to Nordic Guarantee, which offers guarantees to companies, and approximately 1.2 million euros to Atradius, which is engaged in collection activities.
Including Jukkatalo and R4 Korjausurakointi, a total of seven companies with an annual turnover of more than 10 million euros have filed for bankruptcy this year. In the summer, three such companies have collapsed, as in addition to Jukkatalo and R4 Korjausurakinkin, Visura, which operates in Pirkanmaa, also filed for bankruptcy in July. Its turnover last year was more than 23 million euros.
56 companies with a turnover of more than one million euros have already collapsed this year.
Construction industry bankruptcies may soon also appear as unemployment. For example, all 200 employees of Jukkatalo have been dismissed. He was the first to tell about it Over.
The company told its employees about the layoffs on Tuesday. The two-week notice period applies to employed employees.
“Those who are working have a work obligation. Some have been furloughed and they will continue to be on forced leave,” said the employees’ chief shop steward Harri Pernu To Yle.
According to Asiakastieto, a total of almost 1,500 employees have worked in the construction companies that went bankrupt this year. More people than this have probably worked in the companies, because more than half of the bankrupt companies have not disclosed their number of employees.
Almost half of the construction companies that went bankrupt this year operated in Uusimaa. After Uusimaa, most companies operating in Finland and Pirkanmaa have filed for bankruptcy.
Read more: Customers of a failed construction company can expect a lot of trouble and an expensive bill
Read more: Jukkatalo still has 50 construction projects in progress – “Sadness will follow”
Read more: Jukkatalo owes more than two million euros – here are the biggest creditors
Editing August 30, 2023 at 10:50 a.m.: Comparative information about previous years’ bankruptcy applications added to the case and information added to the table that Jukkatalo filed for bankruptcy on Monday.
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