More bankruptcies in April

The number of corporate bankruptcies, adjusted for court session days, has increased. There were 75 more bankruptcies in April than in the previous month, according to Statistics Netherlands (CBS) The trend has been slightly upwards since October 2018. In the first four months of this year, the number of bankruptcies was up by over 3 percent relative to the same period in 2019.

Trend slightly upwards since October 2018

The number of corporate bankruptcies, adjusted for court session days, is seen to fluctuate significantly. Ups and downs alternate quickly. The number of bankruptcies peaked in May 2013. This was followed by a downward trend until September 2017. Subsequently, the trend has been relatively stable. The number of bankruptcies reached the lowest level of this century in September 2018, after which the trend is slightly upwards. The number of bankruptcies in April was the highest number since February 2017.

Most bankruptcies recorded in trade sector

If the number of court session days is not taken into account, 320 businesses and institutions (excluding sole proprietorships) were declared bankrupt in April 2020. With a total of 84 (23 more than in March), the trade sector suffered most.

Trade is among the sectors with the highest number of businesses. In April, the number of bankruptcies was relatively highest in the sector accommodation and food services.

The figures for the reporting month of April do not yet or barely reflect the effects of the coronavirus outbreak. Several weeks may pass between the date of filing for bankruptcy and the court decision. As of week 14, Dutch courts are granting a longer application period of at least four weeks in cases of a bankruptcy petition being made (i.e. by claimants), unless the procedures are deemed urgent. In addition, the Dutch government has established an emergency package for the economy and the job market in order to provide the proper support to Dutch businesses.

Figures published in this news release are provisional and subject to revision.

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