Bankruptcies in skilled trades sector jump 50% in year
The number of bankruptcies in the skilled trades and craft sector has jumped by almost 50% in the space of a year, the industry’s lobby group said on Tuesday.
A total of 72 companies declared bankruptcy during the first quarter of this year, an increase of 47% compared to the same period in 2020, according to figures released by the Chambre des Métiers Luxembourg.
The lobby group warned that many companies could face cashflow problems heading into winter, under pressure due to the lack of raw materials and the winding down of government financial aid related to the pandemic.
Businesses in the sector are also due to repay an estimated €338 million, the Chamber said, around 30% of the total Covid-19 assistance provided.
"The craft businesses are currently weakened and we think that they could be hit hard in a few months by a delayed effect," said Tom Wirion, the head of the Chamber. But he added that the sector had represented only 11% of all bankruptcies in Luxembourg but one-fifth of all businesses.
There were 180 bankruptcies in Luxembourg during the summer months of July and August, the country’s official statistics agency Statec said on Tuesday, a similar number to last year, when 188 businesses went bust.