Since the beginning of the year, 287 companies have been declared bankrupt and 312 have been liquidated. Photos: Shutterstock/Montage: Maison Moderne

Since the beginning of the year, 287 companies have been declared bankrupt and 312 have been liquidated. Photos: Shutterstock/Montage: Maison Moderne

In the first three months of the year, 599 companies were declared bankrupt or were liquidated, reports Statec. This is an increase compared to the same period last year.

2023 has not started well for many Luxembourg businesses and companies. During the first quarter, 287 companies were declared bankrupt, an increase of 5% compared to the previous year, reports Luxembourg’s statistics bureau Statec. The construction, trade and catering sectors were the most affected. In the construction sector in particular, the figures are soaring. There were 58 bankruptcies, 107.1% more than in 2022. Job losses are also significant: more than 325 jobs were lost.

The trade sector recorded 55 bankruptcies, a stable figure compared to last year. Job losses are also considered to be more minimal by Statec: less than 50 jobs have disappeared. In the hotel and catering sector, 38 bankruptcies are to be noted, with a loss of 150 salaried jobs.

Since the beginning of the year, the most bankruptcies have been recorded in March (120, against 98 in February and 69 in January). In recent years, the highest number of bankruptcies was recorded in 2019: 1,232.

A rise in liquidations that remains minimal

Like bankruptcies, liquidations are also more numerous than in 2022, but in proportions that remain to be put into perspective (+1%). 312 were recorded in the last three months. Almost 70% of the companies liquidated during the period were holding companies and investment funds (217 holding companies), according to Statec. Among the other liquidations recorded since the beginning of the year, 19 concerned trade or repair activities, 18 specialised, technical and scientific activities, and 16 administrative and support service activities. In recent years, the most liquidations occurred in 2021: 1,008 over the year.

As a reminder, bankruptcy is a financial condition that no longer allows a company to have sufficient funds to operate. It continues to exist until a dissolution or liquidation procedure. A liquidation is a procedure for closing down the activities of a company or business. It can be voluntary or judicial.

This story was first published in French on . It has been translated and edited for Delano.