Bankruptcy protection requests surge in Türkiye as construction sector struggles
Number of established and closed companies decreased, Istanbul, March 19, 2021 (AA Photo)
Some 1,554 companies in Türkiye filed for bankruptcy protection in the first seven months of the year, as economic tightening measures persist and signs of stagnation grow.
Major brands in the construction sector considered the engine of the economy, are among those seeking bankruptcy protection, with industry leaders citing difficulties in receiving payments from the government.
The number of companies that closed down in the first half of the year increased by 25.8% compared to last year, and bankruptcy protection requests across many sectors have risen by 50-55%.
Leading this trend is the construction sector, traditionally viewed as the flagship of Türkiye’s growth.
The recent bankruptcy protection filing by Yenigun Construction, a major name in the industry, has brought renewed focus to the sector.
Mithat Yenigun, president of the Turkish Contractors Association, could not overcome ongoing financial challenges and sought bankruptcy protection.
According to data from Konkordatotakip.com, a total of 1,516 bankruptcy protection requests were filed in 2023, compared to 1,554 in just the first seven months of 2024.
In the first half of the year, courts issued 55 bankruptcy rulings, with the construction sector topping the list of most at-risk industries, accounting for 398 companies.
Last year, there were 143 bankruptcy protection requests in the construction sector, but in the first seven months of this year alone, the number has already reached 97.
Industry representatives are increasingly raising concerns about delayed government payments.
