Food manufacturer Tavola was one of nearly 1,200 firms that filed for bankruptcy in Luxembourg last year. Library picture: Tavola’s site in Capellen is seen in 2013. Photo credit: Steve Eastwood
The number of company bankruptcies in Luxembourg rose by more than a quarter between 2017 and 2018.
That’s according to Creditreform, a German credit ratings and debt collection agency with an office in Luxembourg.
Herbert Eberhard, managing director of Creditreform Luxembourg, stated in a press release issued on 9 January:
“With 1,195 bankruptcies in 2018, the number of bankruptcies in Luxembourg is at an all-time high. Previously, the highest level was reached in 2012 with 1,033 bankruptcies. In comparison to 2017 the increase is of 27.81%”.
Older firms represented the lion’s share of insolvency cases last year: 78% of bankrupt companies were more than 5 years old (compared to 68% in 2017).
The company wrote in the announcement:
“Some famous companies made headlines last year. Especially the bankruptcy of the food manufacturer ‘Tavola’ in Capellen, which affected about 100 jobs, the bankruptcy of the transport company ‘Mancino’ in Soleuvre with over 20 employees and the tanker company ‘EH Verwaltung Sàrl’ from Roedt with 52 employees. Just before the turn of the year, it was the financial services company ‘Alliage Management SA’ in Luxembourg with 84 employees headquartered in Paris, which has since been subject to a ‘Procédure d’insolvabilité’ (règl. CE 1346/2000).
“With the exception of the above-mentioned companies, it is striking that many companies have gone bankrupt in various industries, employing less than three people.”
According to the credit agency, 74% of failed firms were in the services sector, with 22% in commerce, 4% in construction and less than 1% in manufacturing.
Creditreform complied the figures from filings with Luxembourg and Diekirch district courts.