The number of bankruptcies registered in Finland increased by 5.5% in the first five months of the year amid the coronavirus crisis.
According to Statistics Finland, 1,188 bankruptcies were filed in January–May 2020, which is 62 (5.5%) more than in the corresponding period a year earlier.
The number of employees in the companies filed for bankruptcy totaled 5,659, which is 430 people (8.2%) more than in the previous year.
The number of bankruptcies initiated increased in the main industries of industry and mining, construction, accommodation and food service activities, and other services.Source: Statistics Finland.
Bankruptcies grew the most in the main services sector, where 370 were filed, which is 39 bankruptcies (11.8%) more than a year earlier. The main business area of other services comprises for example information and communication services, financial and insurance activities, real estate, professional, scientific and technical activities, administrative and support service activities, educational services, health and social services, and arts, entertainment and recreation activities.
Decrease in trade sector
The number of bankruptcies decreased in the main industries of agriculture, forestry and fishing, trade, and transport and storage. In terms of numbers, bankruptcies decreased the most in the main trade sector. 214 bankruptcies were filed in the sector, which is 10 bankruptcies (4.5%) less than a year earlier.
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 their debt.