Credit: STATEC
According to the latest figures provided by Luxembourg’s Ministry of Justice and STATEC, 570 companies were declared bankrupt and 69 were liquidated in the first half of 2024.
Bankruptcies
The number of bankruptcies rose by 6% compared to the first half of 2023 (570 vs 537 judgments). Excluding holding companies and investment funds, the number of bankruptcies actually fell slightly (-3.5%). However, this is not really a positive development, warned the authorities. According to initial estimates, the number of salaried jobs lost due to bankruptcies stood at 1,759, compared to 1,340 in the first half of 2023 - an increase of more than 31%. One would have to go back to 2013 and earlier to find similar or even higher levels of job losses.
The largest number of bankruptcies (155) concerned holding companies and investment funds.
The construction sector witnessed 102 bankruptcies in the first six months of 2024 (-2% compared to the same period in 2023) and 830 salaried job losses (+62% compared to 2023).
There were 90 bankruptcies in the retail sector, a drop of more than 13% compared to the same period in 2023. Salaried job losses were estimated at 210 - more than double the figure for the first half of 2023.
Bankruptcies in the Horeca (hospitality) sector amounted to 58 (-8% compared to the first half of 2023), resulting in the loss of 327 jobs (+32%).
Liquidations
Liquidations fell sharply in the first half of 2024 (-83%). Almost 35% of the companies liquidated during the period under review were holding companies and investment funds.
The number of bankruptcies is calculated as the sum of "openings" or "reopenings" minus the bankruptcies reported from the judicial procedure (judgments and declaratory orders of bankruptcy). These figures are provisional.
