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 367 bankruptcies were declared in 2021 (YTD 24-3-2021). This is a staggering 61% less than the number of bankruptcies during the same period last year. This sharply declining trend is readily apparent from Q3 2020.
In March 2021, we count 77 bankruptcies to date (March 2020: 330 -77%). This number is expected to increase. 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) are expected to occur when government support is removed.
Top 10 industries with most bankruptcies in first quarter of 2021
If we look at the top 10 industries with the most bankruptcies. We can conclude that almost 18% of the bankruptcies can be attributed to construction companies. Business services 9.5% and Eating and drinking establishments 6.5%. Holdings and investment companies we have left out of this overview.
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