July 19, 2023

BANKRUPTCIES IN LUXEMBOURG

Bankruptcies are up by almost 13% compared with the first half of 2022 (556 compared with 494 judgements). According to initial estimates, bankruptcies will result in the loss of 1,338 salaried jobs, compared with 927 in the first half of 2022, an increase of more than 44%. We have to go back to 2016 and earlier to find similar or even higher levels of job losses.

The largest number of bankruptcies (113) concerned holding companies and investment funds.
The trade sector will see 104 bankruptcies in the first half of 2023 (up 6% on the same period in 2022) and around a hundred job losses.

There will be 102 bankruptcies in the construction sector, more than twice as many (+104%) as in the same period of 2022. Salaried job losses are estimated at 470, or around 35% of total insolvency-related losses.

There will be 62 bankruptcies in the hotel and catering sector (up 35% on the first half of 2022), resulting in some 238 job losses.

Graph 1: Number of bankruptcies per month since January 2018

Liquidations

Liquidations fell by almost 16% in the first half of 2023. More than 62% of the companies liquidated during the period under review were holding companies and investment funds.

Graph 2: Number of liquidations per month since January 2018
All these topics can be consulted in STATEC’s “Bankruptcies and Liquidations” Dashboard, published on 12 July 2023. The statistics on bankruptcies are based on the record of judicial decisions, taken from the Trade Register and dating from 10 July 2023 for the most recent data.

The number of bankruptcies is calculated as the sum of “openings” or “reopenings” minus the bankruptcies reported from the judicial procedure “judgments and rulings declaring bankruptcy”. These figures are provisional.

Source: Statistics Luxembourg
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