Fewer bankruptcies in 2020

Number of bankruptcies at historically low level

The number of corporate bankruptcies (excluding sole proprietorships), adjusted for court session days, is seen to fluctuate significantly. Ups and downs alternate in rapid succession. The number of bankruptcies peaked in May 2013 (816). The number then decreased up to and including August 2017. Subsequently, the trend remained fairly flat until July 2020. Since then, the trend has been downwards. In December 2020, the number of bankruptcies (on a monthly basis) reached its lowest level since February 1991.

Number of bankrupties in 2020 down by 16 percent year-on-year

Over the entire year 2020, a total of 2,703 bankruptcies were pronounced. This represents a year-on-year decrease of 16 percent. Many companies were affected by the coronavirus crisis in 2020, but the number of bankruptcies was at the lowest level in 20 years.

The number of bankruptcies peaked in 2013 at 8,376 and subsequently dropped for five consecutive years. In 2019, the number of bankruptcies increased slightly, but the level was still relatively low. In 2020, the number of bankruptcies decreased again, to the lowest level in 20 years. The fact that fewer companies were declared bankrupt in times of coronavirus cannot be seen in isolation from the government support.

Sharpest decrease in trade

The number of bankruptcies dropped in almost every sector. In absolute terms, the decrease was most pronounced in the trade sector. Its total fell by 149, from 730 in 2019 to 581 in 2020. In wholesale, retail trade and trade and repair of motor vehicles, the number of bankruptcies dropped by 69, 41 and 39 respectively. Furthermore, the specialised business services sector (including research and consulting firms) saw a decrease of 107. In relative terms, care (health and welfare) was among the sectors with the largest decrease. 

However, the accommodation and food services sector was faced with the strongest increase: 39 bankruptcies. In accommodation services (including hotels), the number of bankruptcies rose by 25 and in food and beverage services (including restaurants and cafes) by 14. A relatively large number of bankruptcies were declared in the second quarter of 2020.

Just as in previous years, most bankruptcies were pronounced in the trade sector (581) in 2020. Trade is among the sectors with the highest number of businesses.