The May 2021 Barometer: Decline in bankruptcies continues

Reading Time 9 minutes | Written by Michiel Scheepens | June 1, 2021

When it comes to the financial health of companies and bankruptcies, we have a better understanding of the current state of affairs than anyone else. In these special times it is very important to keep a finger on the pulse of the financial health of your buyers and suppliers. The barometer shows the current bankruptcies every month in comparison with previous periods and other sectors. Notable this month are the high number of bankruptcies in the industries Construction (contractors construction) and Business Services.

A total of 106* bankruptcies were declared in May 2021 (arrow date 28-5-2021). This is a whopping 67% fewer than the number of bankruptcies in the same period last year. This number is expected to increase somewhat. With 192 bankruptcies, March 2021 is still the month with the most bankruptcies in 2021. Since the beginning of the corona crisis, the number of bankruptcies has been low, even lower than before the corona crisis. This is a result of government support to ensure that normally healthy organizations stay afloat during the crisis. A side effect of these support packages is that financially unhealthy organizations also do not go bankrupt. It is expected that these bankruptcies (Dutch) will occur when government support is removed. *This is a preliminary count.

Analysis support measures

An Altares Dun & Bradstreet analysis of 93,000 companies that received support through the NOW scheme shows that, relatively speaking, the most active organizations also received the most NOW support. So it's not the "zombie companies" that are sitting back and benefiting from support.

These are the most active organizations that also receive the most NOW support, relatively speaking. Of all NOW recipients, 83 percent are average to very active, when it comes to sending invoices and paying bills, for example. This is according to an analysis by business data specialist Altares Dun & Bradstreet of the more than 93,000 companies that received support through Temporary Emergency Measures Bridging Employment (NOW). The least active organizations also receive the least support. So it's not the "zombie companies" that sit back and benefit from support.

Support measures extended by 3 months

The cabinet has decided to make the steunpakketten wederom te verlengen. Hier wordt 6 miljard euro voor uitgetrokken. De Loondoorbetalingsregeling NOW, vastelastensteun TVL en inkomenssteun zelfstandigen Tozo worden drie maanden doorgetrokken. Daarnaast krijgen bedrijven langer de tijd om (belasting)schulden af te lossen bij overheid.

Top 10 sectors with most bankruptcies in May 2021

Within the industries of Holding Companies and Investment Companies (8), Construction (19), Business Services (8) and Goods Transport & Storage (8), the most bankruptcies were declared in May.

Top 10 sectors with most bankruptcies throughout 2021

If we look at the top 10 industries with the most bankruptcies in all of 2021. We can conclude that over 12% of bankruptcies are attributable to holding companies and investment companies, 16% to construction companies and 10% to the business services sector.

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Michiel Scheepens

Marketing Leader Benelux

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