Friday 12/4/20
BUSINESS

Bankruptcies decrease by 15% despite the coronavirus crisis

The number of employees in companies that filed for bankruptcy is 6.2% lower than in the previous year.

Despite the crisis caused by the coronavirus, 2020 is on track to end with fewer bankruptcies than the previous year, due in part to measures taken by the government to support troubled businesses.

According to Statistics Finland, 1,886 bankruptcies were filed in January–October 2020, which is 343 bankruptcies (15.4%) less than in the corresponding period a year earlier. 

The number of employees in companies that filed for bankruptcy totaled 9,770, which is 642 people (6.2%) less than in the same period of the previous year.

Bankruptcies-January-October-2020

Source: Statistics Finland.

In the January to October period, the number of bankruptcies decreased in all main industries.

In figures, bankruptcies decreased the most in the main construction industry, where 366 bankruptcies were filed, 85 (or 18.9%) less than a year earlier.

Other services

There were 60 bankruptcies less in the main sector of other services, which comprises for example information and communication services, financial and insurance activities, real estate, professional, scientific and administrative activities, education, health and social services.

Initiating a bankruptcy does not always mean that a company or professional is "going bankrupt" in the strict sense of the term. 

Bankruptcy is a complex and multi-stage legal process in which the proceedings may be interrupted and businesses can be saved, for example after restructuring debt.

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