According to new statistics, however, 2022 saw an unusually high number of bankruptcy declarations in the last quarter. It remains to be seen over the coming months whether this marked the beginning of a wave, or simply an accumulation at the year’s end.
The latest Statec report shows a remarkable increase in bankruptcies for the hospitality sector in 2022; by comparison, the amount of closures in the Horesca sector in 2021 were exceptionally low.
The commerce sector saw fewer companies close their doors in 2022 than in 2021, while the most bankruptcies took place among funds and holdings businesses - much like previous years.
Some 2,000 employees lost their jobs as a result of the bankruptcies, with over a third of job cuts taking place in the construction sector. Around 45% of companies affected by bankruptcy had no employees, while half had fewer than 10 staff members.
In addition to the bankruptcies, where companies no longer had sufficient financial means to continue operating, Luxembourg saw almost 850 liquidations in 2022, where companies opted to halt activity for other reasons. Half of these companies were funds and holdings.
Statec noted a decrease of 16% in liquidations compared to 2021, although 2022’s last quarter represented an increase of 14% compared to the same period in 2021.
