Innsbruck animal magic before: bankruptcy proceedings initiated!

Innsbruck animal magic before: bankruptcy proceedings initiated!

The “Animal Magic” pet shop in the West shopping center is facing a dramatic turn: the business, which was only opened two years ago, is faced with bankruptcy proceedings. Since the end of May 2025, the procedure has been officially initiated, with a debt of 118,000 euros. While the doors of the business remain open for the time being, the personal fate of the employees is not affected because they are not affected by the closure. But the end could be closer to the popular shopping stamp in Innsbruck than it appears. meinzirk.at reports of the worrying situation that is a trend that affects many small and small companies in Austria.

In the first quarter of 2025, 25 company insolvencies were registered in Innsbruck-Stadt 40 and in Innsbruck-Land. This is part of a larger phenomenon, since 87 corporate bankruptcies are listed throughout Austria every week, especially among the smaller companies. According to the [Kleinezeitung.at] (https://www.kleinezeitung.at/wirtschaft/19607013/kleinstunternehmen-am-haeufistigste- von-Insolvenz-Verfoffen), over 90 % of the opened insolvency proceedings with fewer than ten employees can be attributed. In particular, this includes many single -person companies that still bear the main load of the bankruptcies.

small business in focus

An alarming statistics shows that more than 60 % of the companies concerned have no employees and that over 61 % of bankruptcy cases have no debts of less than 500,000 euros. A third of the private bankruptcies concern former self -employed people who continue to fight with the financial consequences of their entrepreneurial activity. This difficulty is particularly hard the small companies. According to the data provided by [statistics.at] (https://www.statistik.at/statistiken/ industrie-und-handers-und-kunternehemography/registratungen-und-insolven), over half of the insolvency proceedings have not even been opened due to a lack of mass.

The topic of corporate insolvencies is not only a challenge for the affected companies, but also for the entire economy. The EU has already proposed revised guidelines that are intended to enable simplified liquidation for small entrepreneurs. In principle, small companies in the EU are defined as such that employ less than ten employees and have annual sales or total assets of less than 2 million euros. However, an impending threshold could either lead to relief or additional problems - a debate that is seriously discussed by the AKV.

The challenge of a difficult economic situation

The current economic situation in Austria has hit many small businesses hard. In a country where over 90 % of the open company insolvencies already affect small businesses, the need for a reform is urgently required. In order to offer the companies a future perspective, the renovation rates and the procedures should be discussed, which enable them to act outside of the bankruptcy proceedings. Austria also records the highest renovation rates in Europe, which should not be unnoticed.

The situation in "Animal Magic" is another example of the challenges with which many small business owners are confronted with today. And while for the employees of “animal magic” there are preliminary security, it remains to be seen how the situation will develop. The hope of a turn remains, but many small businesses urgently need support to overcome the current crisis.