Lombardy’s Business Crisis: A Looming Wave of Liquidations
Milan – The end of pandemic-era support measures, coupled with challenges in key sectors and a slowing economy, is driving a surge in judicial liquidations across Lombardy. A freeze on real estate operations in Milan is exacerbating the situation, creating a ripple effect that threatens small and medium-sized construction firms and related industries.
Rising Liquidations: A Regional Snapshot
Behind the numbers are stories of businesses reaching their final chapter, jobs lost, and mounting debts. In the first two months of the year, the Milan Tribunal, responsible for over 300,000 businesses in the metropolitan area, declared the liquidation of 113 companies. This represents a significant increase from the 850 procedures recorded in Milan in 2025, compared to 794 in 2024 and 618 in 2023. Brescia (46 liquidations) and Bergamo (39) as well present substantial increases, followed by Monza (32).
The Perfect Storm: Factors at Play
“The effects of the end of state aid during the Covid period have combined with a severe industrial crisis, particularly in the automotive sector,” explains Gianluigi Serafini, a partner at GA-Alliance law firm. “Geopolitical factors and tariffs further contribute to this challenging environment.”
Lombardy Leads the Nation in Liquidations
Lombardy is experiencing the brunt of this economic pressure, holding the national lead in declared liquidations, with numbers returning to pre-pandemic levels. According to Cribis analysis, 45% of national procedures are concentrated in Lombardy, Lazio, and Piedmont.
Walter Pugliese, a commercialist and partner at Proactiva, notes, “For several years, businesses benefited from extraordinary conditions – public support, ample liquidity, and low borrowing costs. Today, the primary pressure point is financial: higher interest rates, stricter credit selection, and reduced market tolerance for weak financial structures. This isn’t necessarily an economic downturn, but a phase of realignment.”
Prudent SMEs and Labor Market Dynamics
Consultants Virginia Miazzo and Michel Malacarne of Studio Miazzo observe a cautious approach from SMEs. “Facing signs of crisis, they are avoiding permanent layoffs by not renewing fixed-term contracts,” they explain. “However, significant difficulties remain in finding skilled workers, such as welders. We had hoped for more impactful measures in the latest economic plan, though we understand resources are limited, the benefits for businesses and workers are constrained.”
Milan’s Construction Sector in Crisis
In Milan, the difficulties in the construction sector are amplified by the aftermath of the “superbonus” scheme and the paralysis of projects following investigations into urban planning management. Lepontina 7-9 srl, a developer involved in a sequestered construction site, was the first company to enter liquidation last year. This is seen as the tip of the iceberg, with other firms in the supply chain facing increasing financial strain. Roberto Panetta, founder of Panetta Law Firm, warns, “The combination of rising liquidations and the urban planning freeze in Milan represents a concrete systemic risk. The failure of a general contractor has a domino effect throughout the entire sector.”
What Does the Future Hold?
The current trend suggests a continued increase in liquidations, particularly in Lombardy, as businesses grapple with higher financing costs and reduced access to credit. The slowdown in the real estate market, especially in Milan, will likely exacerbate the situation for construction-related industries. The end of pandemic-era support measures is removing a crucial safety net, forcing businesses to adapt to a more challenging economic landscape.
Pro Tip
Businesses facing financial difficulties should seek professional advice early on. Exploring restructuring options and engaging with creditors can help mitigate the risk of liquidation.
FAQ
Q: What is a judicial liquidation?
A: A procedure to liquidate a financially insolvent company’s assets to satisfy creditors.
Q: Which region is most affected by liquidations?
A: Lombardy currently has the highest number of declared liquidations in Italy.
Q: What factors are contributing to the increase in liquidations?
A: The end of pandemic support, a crisis in the automotive sector, geopolitical factors, and rising interest rates are all contributing factors.
Q: What can businesses do to avoid liquidation?
A: Seek professional financial advice, explore restructuring options, and engage with creditors.
Did you know? The number of new liquidations nationally increased by 11.7% in 2025.
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