The number of bankruptcies initiated in Finland increased in January-April 2020.
According to Statistics Finland, in the January-April period 986 bankruptcy processes were initiated, which is 76 (or 8.4% more) than a year earlier. The number of employees in companies filed for bankruptcy was 4,620, which is 408 (or 9.7%) more than the previous year.
However, despite those increases, Statistics Finland says the potential impact of the coronavirus crisis on the number of bankruptcies is not yet reflected in the figures. For example, in March, the number of bankruptcies started was at the level of the same month the previous year. And bankruptcies decreased 9.5% in April compared to one year before.
Source: Statistics Finland.
The number of bankruptcies initiated increased in the main industries of industry and mining, accommodation and food service activities and other services.
Highest growth in services
In terms of numbers, bankruptcies grew the most in the main services sector. 316 bankruptcies were filed in the sector, which is 48 bankruptcies (17.9%) more than a year earlier. This sector comprises activities such as information and communication services, financial and insurance activities, real estate, professional, scientific and technical activities, administrative and support service activities, education, health and social services, and arts and entertainment activities.
The number of bankruptcies decreased in the main industries of agriculture, forestry and fishing, construction, trade, and transport and storage. In terms of numbers, bankruptcies decreased the most in the main trade sector: 177 bankruptcies were filed, which is 8 (or 4.3%) less than a year earlier.
A bankruptcy is a complex processes initiated by a company, entity or natural person. It does not always mean that a company or professional is "going bankrupt" in the true sense of the term. It is a multi-stage legal process in which the proceedings may be interrupted at various stages.