Large Spanish companies set new records for insolvencies and threaten to trigger chain reaction of bankruptcies among suppliers

So far this year, 78 large companies have had to file for insolvency proceedings, 28% more than during the same period in 2025, according to Solunion's third-quarter report. The trend puts the rolling annual figure at 102 major corporate insolvencies, an unprecedented level in the historical series and almost double the usual range of 50 to 60 cases a year.

The risk of a knock-on effect has already become apparent this year in high-profile cases such as that of Tubos Reunidos. Now, the threat looks increasingly likely to spread throughout the supply chain.

Large companies account for just 0.4% of all insolvency proceedings declared by September, compared with 90% for microbusinesses (39%) and small companies (51%). However, when major companies run into financial trouble, they can leave millions of euros in unpaid invoices and threaten the survival of dozens of suppliers at once.

"These major insolvencies are fuelling the risk of a domino effect because of the extensive networks of suppliers involved. This could lead to a rise in insolvencies among smaller companies over the coming quarters," Solunion warns.

The construction sector has suffered the sharpest deterioration among large companies. Seven of the 20 insolvency cases recorded during the third quarter involved construction firms. The year-to-date total has now reached 20 major construction companies, compared with just five during the same period in 2025. That represents a 233% increase and reflects the difficulties these businesses face in absorbing costs while protecting profit margins on their projects.

Across all large companies, insolvencies increased by 11% in the third quarter, with 20 cases compared with 18 during the same period in 2025. The year-to-date figure has risen by 28%, from 61 to 78 cases.

Agrifood and services lag some way behind construction, with three major insolvency cases each during the third quarter. Their year-to-date totals stand at eleven and nine, respectively.

The deterioration among major companies helps explain the sharp change in the overall trend confirmed by the third-quarter figures. After several months of falling numbers followed by a period of stabilisation in the spring, corporate insolvency proceedings rose by 22% between July and September compared with the same period last year. September proved the main trigger, with cases in the commercial courts soaring by 58%.

Between January and September, the courts recorded 3,788 proceedings, 5.3% fewer than during the same period in 2025. That compares with a 13% fall at the end of the first half of the year.

The change in the outlook has forced Solunion to revise its forecasts for 2026. At the start of the year, the credit and surety insurer expected insolvencies to fall by 10%. It now predicts around 5,550 cases by the end of the year, just 2% fewer than in 2025.

In its third-quarter report, Solunion points out that much of the rise in insolvency proceedings since 2022 stems from the reform of Spain's insolvency act. The changes introduced a special procedure for microbusinesses and brought thousands of small firms into the official statistics. Previously, many of these businesses simply closed their doors without going through the courts.

However, companies have made less use of this procedure as the year has progressed. Its use has fallen by 19% by September, mainly because fewer businesses in major sectors have turned to it, including services (down 24%) and retail (down 18%).

This decline has restored the ordinary insolvency procedure to an almost exclusive role, accounting for 90% of all cases.

Catalonia and Madrid account for the highest numbers of insolvency proceedings, with 994 and 694 cases respectively by September, followed by the region of Valencia with 535.

However, while the first two regions continue to record year-on-year falls, the sharpest change in direction has occurred in Valencia. There, the figures shifted from a 13% decline by June to a 7% increase by September, after insolvency proceedings surged by 74% in the third quarter. This puts the region on course for 783 cases over the full year.

The increase has been even more pronounced in Aragon, where insolvency proceedings have risen by 51% so far this year to 104 cases. The main drivers have been a sharp deterioration in the services sector, where cases rose by 192% in the quarter, and in construction, where insolvencies increased by 40%.

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