The total number of presented bankruptcy forms this year has not gone up significantly but difficulties have hit one sector in particular: Companies involved in tourism and catering, which have been hit hard by the coronavirus pandemic, have become insolvent and are awaiting state support.
Taking a look around Old Town Tallinn, plenty of closed businesses stick out. The effects of the coronavirus pandemic on tourism, hotels and catering are absolutely clear.
Vallo Palvadre, one of the owners of the Pub With No Name (“Nimeta baar”), told ETV’s “Aktuaalne kaamera” on Thursday: “We have been able to keep ourselves open today but I think that there is no single entrepreneur in the sector – the restaurant and bar sector – who has a glimmer of hope on their face. The situation has gotten harder and harder with each passing day.”
If this continues, Palvadre said his bar is also facing the risk of becoming insolvent.
The total number of bankruptcy statements has actually not gone up too much since spring. Last year, courts were presented with 1,092 statements of insolvency in the first nine months, this year that number stands at 1,170 with 768 coming from individual persons and 402 from legal persons.
While the numbers are similar, bankruptcy manager Martin Krupp said the most bankruptcy statements have clearly come from catering, accommodation and the related fields.
Read more: ERR.EE