Italy corporate liquidations rise 26% in early 2026

Italy is experiencing a significant rise in corporate insolvency. In the first quarter of 2026, judicial liquidations reached 2,540, marking a 26% increase compared to the same period in 2025. Data from the Osservatorio Creditsafe indicates that procedures involving small businesses rose by 52%, while composition with creditors (concordati preventivi) grew by 59%, increasing from 56 to 89 cases.

Legal experts highlight the risks for entrepreneurs attempting to manage liquidity shortages by selling company assets below market value. Under Italian bankruptcy law (r. d. 267/1942), such actions can be classified as fraudulent bankruptcy. This includes patrimonial bankruptcy for dissipation, where resources are wasted through unreasonable operations, or improper bankruptcy through fraudulent acts intended to cause economic disaster.

In response to these trends, specialists like Fabio Splendori of Splendori & Partners emphasize the need to distinguish between the immediate symptoms of a crisis, such as cash flow shortages, and the underlying causes, such as declining margins or operational inefficiencies, to implement effective turnaround strategies.