Switzerland: “Wave of bankruptcies” hits companies

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3,390 business insolvencies were counted in the first half of 2022, Creditreform, the Swiss creditors’ union, revealed on Wednesday.

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A “bankruptcy wave” sweeps through Swiss companies: in the first six months of the year, 3,390 business bankruptcies were counted in the country. This corresponds to an increase of 40% compared to the previous year and 10% compared to the pre-pandemic average (fiscal years 2018 and 2019), Swiss creditors’ association Creditreform revealed this Wednesday.

Not all sectors are affected equally. “Service companies have been hit hardest, with up to 40% more insolvencies in 2018/2019 compared to pre-crisis,” notes Creditreform. A press release. Creditors’ Union explains the figure is due to the large number of new companies created before the health crisis. While many of them were able to get by with government assistance during the pandemic, “they are now trapped in the reality of the market”.

On the other hand, Creditreform notes that the restaurant and construction industries are often spared from bankruptcy.

A decline in private bankruptcies

The press release showed a 9% decline in private insolvencies compared to the previous year. Creditreform considers this “surprising” and considering the increase in the number of proceedings for companies, insolvency offices are putting some of the incoming proceedings against individuals aside.

(comm/aze)

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