In 2023, Luxembourg saw a total of 935 bankruptcies, marking a 7% decrease compared to the previous year when nearly 1,000 companies failed, according to data from the National Institute of Statistics and Economic Studies (STATEC) and the Ministry of Justice.

While the overall decline may initially appear promising, it has to be put into perspective. The reduction in bankruptcies is primarily attributed to companies without employees, experiencing a 14% decrease, as well as holding companies and investment funds, witnessing a significant 26% drop.

However, a closer examination reveals a contrasting picture for businesses with employees, where bankruptcies registered an 11% increase. Notably, among companies with more than 10 employees at the time of bankruptcy, the figures surged by a substantial 39%, as stated in STATEC's press release published on Wednesday.

Sectors most impacted by this upward trajectory in bankruptcies include real estate (+41%), and construction (+36%). On the other hand, the number of bankruptcies fell in the retail (-8%) and hospitality (-9%) sectors.