Business insolvencies up compared to last year
(CS) The number of bankruptcies in Luxembourg in the first half of 2015 grew compared to the same time last year, with younger business, however, showing more resilience than previously.
A total of 410 companies declared bankruptcy over the first six months of 2015, with a majority (219) from the services sector, 132 working in retail, 55 in construction and four in manufacturing.
The number of bankruptcies was up compared to the first six months of last year, when 398 companies closed. However, it was well below the peak year of 2012, then 571 companies filed for bankruptcy in the first six months.
The increase in insolvencies this year compared to 2014 was largely due to a jump in bankruptcies in the construction sector, which was up from 33 in the first half year of last year. The biggest job loss in the sector (91 employees) was seen at OR TP SA, which was carrying out demolition work at Centre Hamilius in Luxembourg City when it folded. This was followed by Heirens sàrl, where 47 jobs were lost.
In the services sector, cleaning company Tesal was the biggest company to fold with 60 employees losing their jobs. Meanwhile 43 jobs were lost at Pragma Consult SA, a company working in IT.
The total number of job losses was not given.
The majority of companies that filed for bankruptcy between January and June this year were over five years old (69.27 percent), while less than a third (30.73 percent) were under five years old.
This marked a noteable increase in resilience for younger companies. In the first half of 2014, the rate of companies who failed within five years of being founded was at 40.7 percent.