Record number of bankruptcies

Over 10 thousand bankruptcies were declared in 2005, the highest number ever. The increase in the total number of bankruptcies by 8 percent, compared to 2004, is entirely due to single-owner companies and private individuals. The number of bankruptcies among limited companies (B.V.’s) fell slightly, according to the latest figures by Statistics Netherlands.

More bankrupt individuals

The number of bankruptcies of single-owner companies in 2005 was up by almost a quarter on 2004. The number of bankruptcies among private individuals rose by more than 20 percent. About 40 percent of the bankruptcies were private individuals, with or without a single-owner company, who did not manage to succeed in debt restructuring.

The number of bankruptcies of limited companies (B.V.’s) was down by 4 percent on 2004. With 4 400 bankruptcies the limited companies account for over 40 percent of the total number of declared bankruptcies.

Largest increase in bankruptcies in hotels and restaurants and in transport

The largest increase in bankruptcies among all branches observed was in hotels and restaurants, and in transport, storage and communication. In these two branches the number of bankruptcies was 26 percent higher than in 2004. Almost 90 percent of the total number of companies declared bankrupt in 2005 employed less than 20 people.

Increases in bankruptcies mainly in the provinces Gelderland and Limburg

In 2005 Gelderland and Limburg saw the largest increase in the number of bankruptcies. Both the provinces saw the number of bankruptcies increase by 15 percent. Only three provinces saw no increase in bankruptcies.

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