With 248 bankruptcies recorded in June and July in Luxembourg, the country saw 62 more cases than in the same period a year earlier, an increase of 77%, Creditreform data shows.
The debt collection agency has observed a marked increase in insolvencies in the trade sector, with 58 cases compared to 23 twelve months earlier. "The expiry of state aid for commerce may have accelerated the structural change and led to an increase in the number of bankruptcies," says Juan Santiago, project manager at Creditreform.
In the hotel and catering sector, the trend is downwards, with six bankruptcies observed compared to 15 a year earlier, a fall of 60%. Compared to 2019, the difference is 71%. "We presume that this sector is artificially maintained by subsidies," says the specialist.
Although it accounts for nearly seven out of ten bankruptcies, the service sector seems relatively unaffected, since the increase in insolvencies amounts to 14%, notes Creditreform.
"Despite the government's financial support, we are convinced that many companies will not be able to overcome this crisis," adds Juan Santiago. In the first half of this year, the Niederanven-based office noted a 14% rebound in total bankruptcies in Luxembourg, while anticipating a sharp increase from 2022.
This article was originally published in Paperjam. It has been translated and edited for Delano.