September saw most bankruptcies in two years

More companies went bankrupt in September than the average in the past two years, the Dutch Chamber of Commerce (KVK) said in its monthly trend reports. Small and medium-sized enterprises (SMEs) also saw more companies closing than usual and fewer startups, reflecting the increasing problems many companies face.

Last month, 176 companies went bankrupt, the highest number since October 2020. According to Joris Knoben, professor of strategy and entrepreneurship at the Tilburg School of Economics and Management, the number of bankruptcies is still quite low. “But it is an important indicator of financial problems in business.” He thinks that “the accumulation of problems, such as corona and the cost crisis,” is getting more and more companies in trouble.

Among startups, the number of security companies is remarkably high, although a large part of them are freelancers. There is a lot of work to be found in that sector, as evident from Schiphol's long lines caused by a shortage of security guards.

The number of start-ups in the call center industry decreased. The debt collection industry is also unpopular. No new companies have opened in this sector for months.

On 1 October, 1,2,294,255 companies were registered with the KVK. That is over 150,000 more than a year earlier. In September, 21,841 new companies opened, and 9,706 companies ceased their activities.

Last week, credit insurer Atradius reported that bankruptcies in the Netherlands would increase by 9 percent this year and then jump a massive 77 percent in 2023. The final effects of the government’s coronavirus support will have worn off. And that, combined with rising inflation, interest rates, and energy costs, will push many companies over the edge, Atradius said.