Bankruptcies decreased 6% in January-July

The number of bankruptcies registered in Finland decreased by 6% in the first seven months of the year, despite the coronavirus crisis.

According to Statistics Finland, 1,459 bankruptcies were filed in January–July 2020, which is 93 (6%) less than in the corresponding period a year earlier.

But even though they are fewer in number, bankruptcies have affected more workers. The total number of employees in companies filed for bankruptcy was 8,067, which is 718 people (9.8%) more than in the previous year.

The number of bankruptcies initiated increased in the main sectors of industry and mining and other services.

Source: Statistics Finland.

In absolute numbers, bankruptcies grew the most in the main services sector, where 465 bankruptcies were filed, which is 17 bankruptcies (3.8%) 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 activities, professional, scientific and technical activities, administrative and support service activities, educational services, health and social services, and arts, entertainment and recreation activities.

Decrease in agriculture, construction

The number of bankruptcies decreased in the sectors of agriculture, forestry and fishing, construction, trade, transport and storage, and accommodation and food service activities. In terms of numbers, bankruptcies decreased the most in the main construction and trade sectors. 42 fewer bankruptcies were filed in the sectors than a year earlier, which is 12.8% less in the main construction sector and 14% less in the main trade sector than in the previous year.

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.