Bankruptcies continue to fall

21/11/2006 14:00

The decrease in the number of bankruptcies which started to take shape in the beginning of 2005 has continued in 2006. Bankruptcies fell by most in the manufacturing industry in the first three quarters of 2006. 

Fewer companies bankrupt

The total number of companies pronounced bankrupt has been falling since the beginning of 2005. The number continued to decrease substantially in 2006: from 1,200 in the first quarter to just over 950 in the third quarter. The change in the number of company bankruptcies is an indicator for economic development.

Bankruptcies

Bankruptcies of natural persons stable

In the first three quarters of 2006, Dutch courts pronounced a total of nearly 7.1 thousand bankruptcies. This is 7 percent down on the same period last year. The number of bankrupt companies fell by 15 percent. For one-man businesses and natural persons, the number has stabilised following years of increase.

Bankruptcies, first three quarters

Largest fall in manufacturing

The number of companies, one-man businesses and institutions pronounced bankrupt fell in nearly all sectors of industry in the first three quarters of 2006 compared with the same period last year. With a decrease of 20 percent, the fall in manufacturing was largest. Bankruptcies rose only in agriculture and in the hotel and restaurant sector, by 6 and 25 percent respectively. In the hotel and restaurant sector the number of bankruptcies has been rising since the beginning of 2003. This corresponds with the economic decline in this sector in the period 2002–2004.

Bankruptcies of businesses, one-man businesses and institutions, first three quarters

Fall in all provinces

The total number of bankruptcies fell in all provinces in the first three quarter of this year compared with the same period in 2005. The largest decreases were in Friesland and Flevoland (both 29 percent).
In South Holland the number of bankruptcies remained about the same. Fewer companies went bankrupt in this province, but this was counterbalanced by an increase in the number of natural persons and one-man businesses declared bankrupt.

Rudolf Timmermans and Arie Eilbracht