Number of bankruptcies increases after months of decline | NOW



The number of companies that went bankrupt has risen for the first time in five months, according to figures from the Central Bureau of Statistics (CBS) on Monday. In September 183 companies went bankrupt. A month earlier there were 173. However, the figures are still significantly lower than in the same period last year.

It seems that the corona crisis is visible for the first time since the spring in the number of companies that go bankrupt. In April there was still a peak of 335 bankruptcies. After that, the number fell for four months in a row, reaching even the lowest point in 21 years in August.

The cause of this is probably the support package that the government has introduced to keep companies afloat during the COVID-19 pandemic. This includes the wage cost subsidy (NOW) and the Fixed Cost Allowance (TVL). This ensured that many companies were able to keep their heads above water.

Of all sectors, most companies in trade went bankrupt in September, namely forty. However, it is the industry with the largest number of companies. Relatively speaking, most bankruptcies were counted in the transport and storage sector.

The increase in the number of bankruptcies is certainly not alarming. For example, in September 2019, 257 companies went bankrupt and in the same month in 2018, there were 224. That is significantly more than last month’s 183.

If we look at the entire year so far, the number of bankruptcies is also lower than in 2019. In the first 40 weeks of 2020, 2,621 companies went bust. That is 264 fewer than in the same period last year.

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