Bankruptcies, liquidations down by around a quarter in 2022

The number of businesses that filed for bankruptcy or went into liquidation fell by about a quarter in the first nine months of 2022 compared with the same period last year, Luxembourg’s statistics agency said on Friday.

A total of 675 companies were declared bankrupt and 573 were put into liquidation in the first nine months of 2022, Statec said in a report based on court decisions.

The number of bankruptcies declared between January and September decreased by more than 21% year-on-year, while the number of liquidated companies decreased by 25%, the report stated.

In December of last year, at least 21 companies in the construction sector went under, out of a total of 130 bankruptcies that month alone, a statement of court rulings released by the Luxembourg business register showed.

Holding companies and investment funds accounted for 26% of bankruptcies so far in 2022, and 20% of bankruptcies were in the trade sector. A total of 45% of holding companies and investment funds, and 16% of companies in the trade sector, went into liquidation.

Luxembourg recorded a threefold increase in business closures in the most affected sectors during the peak of the pandemic in 2020 and 2021. Last year, there was a particular increase in liquidations in commerce and trade, gastronomy and tourism and in scientific and technical activities, Statec said at the time.

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