Bankruptcies continue to rise

Dutch courts pronounced more than 4,250 bankruptcies in the first nine months of 2001. This is 34% more than in the same period last year, continuing the rising trend observed since mid 1999.

Pronounced bankruptcies, per quarter

Businesses failing soon after only a few years

In the first nine months of this year 1,075 private persons without a one-man business were declared bankrupt. This is 73% up on the same period last year. Part of the increase was caused by persons with a debt restructuring arrangement as yet being declared bankrupt.

The number of companies and institutions declared bankrupt rose by nearly a quarter. The number of companies going into receivership rose from 1,851 to 2,416 (+31%). The increase was less sharp for one-man businesses, at six percent.

One-man businesses declared bankrupt, by number of years in business

Nearly half of failed enterprises have been in business for less than five years. Most bankrupt one-man businesses, nearly six out of ten have been in business for less than five years. Four out of ten bankrupt companies have existed for less than five years.

Companies declared bankrupt by number of years in business

Differences between sectors

The number of business failures has risen in most sectors of industry, but most strongly in financial institutions, leasing and business services (+45%) and in construction (+34%).

Bill Swaager