The estimate is ominous, but it was these companies that suffered the strongest blow from the Covid-19 pandemic in the country. This prediction was made by the Consumer Protection Association in Bulgaria. It is not much different from those in other European countries and around the world. The percentage varies according to the force with which the pandemic has hit each individual country.
Bulgarian business is based and developed by such businesses. 90% are small and micro firms. Government assistance should be targeted at these companies, because they have suffered and continue to suffer the brunt of the pandemic. The contraction of production and turnover will lead not only to bankruptcies, but also to high unemployment due to the forced dismissals of employees in these enterprises. Rescue measures were delayed or not targeted at all at small and micro businesses.
After the initial strict quarantine, the companies started working, but only at 50% of the turnover before the pandemic. In the big cities the situation is the worst. Entire malls and shopping areas on central streets are closing because traders go bankrupt one after another.
Then comes the problem with collection companies, which charge interest on non-transparent terms. Legal fees and other costs are added.
Therefore, we strongly recommend you contact a law firm to help you go through the liquidation and bankruptcy processes more easily. They will protect you from such arbitrariness and will initially stop bad practices. One of the options is voluntary implementation, but it all depends on the case. The team of consulting and law office VD&A is composed of experienced experts in the field of tax administration and servicing of companies in liquidation or bankruptcy.
International law office VD&A enjoys great trust among business owners, both in Bulgaria and abroad. The law firm works in Bulgaria, both with Bulgarian companies and with foreign ones.
You can see the legal services they offer here: https://www.euroformat.eu/
According to the government, their anti-crisis measures are available mainly to medium and large enterprises. This implies an increase in intercompany indebtedness to continue to grow and increase arrears. Until recently, they were delayed by an average of two months. Thus, eternal indebtedness continues growing.
According to the Consumer Protection Association, the Transport, Automotive, Textile, Tourism, Construction and Metals sectors have been hit hardest by the liquidity crisis.