The service sector made up the lion’s share, accounting for 445 cases (compared to 418 in 2020), marking a 6.46% rise.

Construction saw 68 firms fold at the start of the year, a 38.7% rise compared to the year before when 49 firms went bankrupt. Trade saw a similar growth with bankruptcy cases rising 36.73%, from 98 cases to 134.

The report points out that this follows a trend that pre-dates the pandemic. Indeed, in 2019, Creditreform recorded 128 bankruptcies in this sector. Hospitality (Horeca) lost 66 firms, compared to 55 the year before. In both timeframes, figures were below pre-pandemic levels and in 2019 the sector lost 72 firms during the first six months of the year. Manufacturing was the least impacted with three company bankruptcies.

Creditreform observed that most bankruptcies in the first half of 2021 concerned smaller firms. However, the construction sector lost some big players, including Socoma Constructions Luxembourg Sarl in Bridel (40 employees) and Solartec in Grevenmacher (30 employees). Also among the bankruptcies were Lenningen-based jewellery retailer Bigor International Sarl, which employed 33 staff.

Creditreform forecast a continued rise in the number of bankruptcies in Luxembourg from 2022 onwards, especially among smaller firms, even if the recovery of most sectors of the economy continues overall.