After years of steady decline, bankruptcy procedures in Italy are rising again: from the historic low of 1,093 cases recorded in 2023 to 2,314 in 2024, marking a 112% increase. This data signals a clear reversal of trend and renews the focus on the need for effective tools to prevent and manage corporate crises.
In this complex scenario, alongside institutional measures, the role of workers’ buyout (WBO) is strengthening—a revival model that allows employees to take over struggling companies and transform them into cooperatives. Between 2011 and 2024, WBOs have saved nearly 100 companies. These are among the findings of the report “Evolution of Business Crisis in Italy: Rules and Tools” by Francesco Baldi, Lecturer in the International Master in Finance at Rome Business School; Massimiliano Parco, Economist at Centro Europa Ricerche; and Valerio Mancini, Divulgative Research Center at Rome Business School.
According to Massimiliano Parco, corporate bankruptcies in Italy have been driven by a combination of economic shocks—including the 2008 financial crisis, sovereign debt issues, the pandemic, and the energy-inflation crisis—and internal structural weaknesses such as limited credit access, high tax pressure, and regulatory complexity. ISTAT data shows that bankruptcies peaked at 14,735 in 2014, after which they gradually declined until 2020, in line with GDP recovery.
In 2020, despite an 8.9% GDP contraction, bankruptcies surprisingly dropped to 7,160 (-32.1%), a decrease attributed to extraordinary pandemic measures such as moratoriums, subsidies, and employment protection policies. However, a rebound effect occurred in 2021, with a 36.2% increase and 9,755 new cases. By 2023, bankruptcies hit a historic low of 1,093, but 2024 marked a sharp reversal, with an increase of 1,000 cases over the previous year, totaling 2,314 bankruptcies.
Between July 2024 and January 2025, according to InfoCamere data, 2,064 companies filed for bankruptcy: 665 in services (trade, transport, hospitality), 459 in industry, and 443 in construction. Rome leads the rankings with 209 filings (10.1%), followed by Naples (129), Bari (93), and Padua (91). To counter bankruptcies more effectively, the Business Crisis and Insolvency Code was introduced in 2022, adopting a preventive approach to managing corporate difficulties. This regulatory framework aims to safeguard business continuity through three categories of tools: crisis prevention, restructuring (prioritized over liquidation), and liquidation with the possibility of a fresh start. The goal is to enable swift and targeted interventions to prevent corporate distress and support business recovery. However, another proven method for corporate rescue in recent years is the workers’ buyout (WBO).
The workers’ buyout is a revival tool where employees of a failing or succession-less company take over ownership, usually forming a cooperative. This process helps preserve skills, production continuity, and business relationships, turning workers into key players in business recovery.
According to Cooperazione Finanza Impresa (CFI) data, since 1986, CFI has provided 306 million euros to 543 worker and social cooperatives, helping protect over 25,000 jobs. Between 2011 and 2024 alone, 97 WBO operations were funded for a total of 58 million euros, involving over 2,000 workers and generating a production value of approximately 490 million euros. “Supporting and promoting the culture of Workers’ Buyout could provide a structural response to many Italian industrial crises, especially among small and medium-sized enterprises, transforming employees into agents of change,” says Francesco Baldi.
A detailed analysis of the 2011-2022 period reveals that CFI supported 58 WBO operations with a total investment of 16.2 million euros, divided into 7.7 million in equity, 3.3 million in subordinated loans, and 5.2 million in financing.
Territorial distribution shows a strong concentration in Emilia-Romagna, with 18 operations (31% of the total), followed by Sicily (8%) and Umbria (7%), while six regions recorded no WBO cases (Valle d’Aosta, Liguria, Trentino-Alto Adige, Friuli-Venezia Giulia, Molise, and Basilicata). Sector-wise, the phenomenon is not homogeneous: 69% of WBOs (40 out of 58) operate in the industrial sector, 12 in services, and the remaining few in construction, plant engineering, and social cooperation.
WBOs prove to be an alternative and participatory model for business recovery, ensuring productive and employment continuity for struggling companies. In Italy, over 90% of workers involved retain their jobs in the long term, with cooperatives showing a 10-15% productivity increase compared to traditional companies (Euricse, 2023). Additionally, WBO enterprises maintain a high survival rate: according to CFI-Cooperazione Finanza Impresa (2024), over 90% of cooperatives formed through WBOs remain active after three years, compared to a 75% average for traditional businesses. Recent data shows that between 2018 and 2023, 85 new WBOs were established, saving approximately 5,500 jobs.
The main advantages of WBOs include greater financial stability, reduced speculative risks, and direct worker involvement, which fosters internal cohesion and long-term investments. However, challenges remain: 40% of projects fail in the initial phase due to lack of capital (Banca Etica, 2023), while 30% close within five years due to management shortcomings (Confcooperative, 2024). Regulatory obstacles, difficulty in accessing credit, and slower decision-making processes further limit their spread.
To enhance WBO potential, it is essential to strengthen financing channels, invest in managerial training, and promote networks between cooperatives, institutions, and local communities. The Italian experience demonstrates that, when adequately supported, WBOs can offer a concrete and sustainable solution to corporate crises. “Investing in workers’ buyout means investing in a more stable, inclusive, and resilient business future,” concludes Valerio Mancini.