National statistics office Statec said it “expects an increase in bankruptcies in the months to come” in a report published on 28 April.

In March 2021, Luxembourg courts declared 116 companies bankrupt, compared to 139 in 2019. In March 2020, this number was at just 65, but it also coincided with the grand duchy going into a nationwide lockdown as it grappled with the coronavirus pandemic.

With state support still shoring up businesses, bankruptcies are expected to hit once aid runs out and companies must manage on their own in a post-pandemic world.

But while bankruptcies might be staved off, liquidations were on the rise. The number of companies liquidated went from 60 in March 2019 and 53 in 2020 to 183 in March this year, a staggering 245% increase.

Outside of holdings companies and investment funds--liquidated more frequently--Statec reported a particular increase in liquidations among commercial businesses and the hospitality sector.

While in the case of a bankruptcy, a company becomes insolvent and is unable to pay suppliers and bills, liquidation describes the dissolution of a business, which can be voluntary or court-ordered.