Bankruptcies Up 13%, Liquidations Down 16% in H1 2023

According to the latest figures provided by Luxembourg's Ministry of Justice and STATEC, 556 companies were declared bankrupt and 407 were liquidated during the first half (H1) of 2023.

The number of bankruptcies increased by nearly 13% compared to the first six months of 2022 (from 494 to 556).

According to initial estimates, salaried job losses linked to bankruptcies amounted to 1,338, compared to 927 in H1 2022 - an increase of more than 44%. According to the authorities, the last time there was a similar or higher number of job losses in this context was back in 2016.

The largest number of bankruptcies (113) concerned holding companies and investment funds. The trade sector saw 104 bankruptcies in H1 2023 (up 6% compared to H1 2022) and around 100 job losses. Moreover, there were 102 bankruptcies in the construction sector, more than double (up 104%) compared to H1 2022. The loss of salaried jobs is estimated at 470, or around 35% of the total job losses related to bankruptcies. Bankruptcies in the Horeca (hospitality) industry stood at 62 (up 35% compared to H1 2022), resulting in about 238 job losses.

Liquidations, on the other hand, decreased by nearly 16% in H1 2023. More than 62% of the companies liquidated during the period under review were holding companies and investment funds.