Business: Reports suggest that a record number of bankruptcies were declared in Luxembourg in 2011, with 930 businesses shutting down.
Local media reports that the number of bankruptcies in the Grand Duchy has climbed by over 31 percent compared to 2009, when 613 companies shut down due to insolvency. In 2010 the number of bankruptcies stood at 918 and last year that rose to 930.
Unsurprisingly, many of the companies that were forced to close were small businesses with an annual turnover of less than two million euros and employing between one and five staff. But there were exceptions, including the collapse of construction company Socimmo, which saw 470 employees lose their jobs (photo).
And the trend looks likely to continue – on 2 January this year four companies were declared bankrupt by the courts according to the legal website www.barreau.lu.