NL sees fewest bankruptcies since 1991, despite pandemic

Despite the pandemic putting pressure on the Dutch economy, 2020 saw remarkably few Dutch businesses go bankrupt. A total of 2,703 companies were declared bankrupt last year, 16 percent less than in 2019 and the lowest number since 1991, Statistics Netherlands reported on Tuesday.

The stats office attributed the low number of bankruptcies to the coronavirus support measures the government put in place to help businesses survive the pandemic and its accompanying lockdowns. These support measures also stabilized companies that may have collapsed if there had been no pandemic and no support.

The number of bankruptcies decreased in most industries. In absolute numbers, the decrease was strongest in trade - the industry with the most businesses in the Netherlands. In this sector, the number of bankruptcies decreased from 730 in 2019 to 581 this year. Specialist business services also saw a big decrease in bankruptcies in absolute numbers. Percentage wise, the biggest decrease was in health and welfare care.

The hospitality industry, on the other hand, saw an increase in the number of bankruptcies. A total of 235 accommodation and catering businesses went bankrupt last year, compared to 196 the year before.