In the month of June, we experienced an increase in the number of bankruptcies with a total of 364 bankruptcies, which is an increase of 15% compared to 317 bankruptcies in June last year.
For the entire second quarter of 2024, 1,236 bankruptcies were registered, which corresponds to a decrease of 4% compared to the second quarter of 2023.
On an annual basis, a total of 2,449 companies have gone bankrupt so far this year, a decrease of 7% compared to 2,644 bankruptcies in the same period last year.
The number of newly started companies has also shown a decrease, with a total of 5,558 new companies, which is a reduction of 17%.
Morten Kofoed-Larsen, Country Manager Denmark, comments: “Although we experienced a 15% increase in the number of bankruptcies in June, the overall figures for the second quarter and the year as a whole show positive trends, with a decrease of 4% and 7% respectively. This indicates some stabilization in the market. However, it is important to note the significant decrease in the number of start-ups, which may indicate an underlying uncertainty among contractors. Particularly alarming is the increase in bankruptcies within accommodation and education, which indicate challenges in these sectors.”
Zealand had the largest decrease in bankruptcies with -30%, most bankruptcies in Southern Denmark (100%) and the capital (27%).
Increase in bankruptcies within accommodation and education, fewer start-up companies
The hardest hit industries are accommodation facilities and restaurants, which have seen a 29% increase in bankruptcies, and education, which has seen a dramatic increase of 100%.
In addition, we see a significant decrease in the number of start-up companies. A total of 5,558 new companies were established, which is a reduction of 17% compared to last year. This suggests a general uncertainty in the market and a possible reluctance among Danes to start new businesses.
Norway and Sweden see alarmingly high bankruptcy rates
In Norway, we observed a moderate increase of 13% in May, and in June the percentage increase fell further to 6%. A total of 347 companies went bankrupt in the first summer month of the year, compared to 327 bankruptcies in June last year. This led to a total of 1,069 bankruptcies in the second quarter, an increase of a whopping 27% compared to the same quarter in 2023. This results in an overall increase in the number of bankruptcies of 5% compared to last year.
Per Fjærestad, general manager at Creditsafe Norway, comments: “The bankruptcy figures fluctuate strongly and do a complete reversal from the first to the second quarter. We might have had little hope that we would be over the top after the positive start to the year, but this development is completely in line with what we expected. Q2 ensured an effective correction of the rise we had in Q1, and we now see a development with a clear increase in the number of bankruptcies.”
In Sweden, 864 limited companies went bankrupt in June, a slight increase from 836 bankruptcies in the same period last year, which represents an increase of 3%. A total of 5,442 joint-stock companies went bankrupt in the first half of the year, which is 39% more bankruptcies compared to the previous year and 87% more bankruptcies compared to two years ago.
“June shows a slight increase in percentage figures, but the number of bankruptcies this month is still historically high. It is important to remember that last June was one of the months with the highest number of bankruptcies throughout 2023. Although levels appear to have stabilised, this year will be one of the toughest.” comments Henrik Jacobssongeneral manager of Creditsafe Sweden
Source: it-kanalen.dk
