October sees fewer bankruptcies, hospitality sector still most affected

The number of bankruptcies continued to fall in October, according to Statistics Netherlands. A total of 253 companies went under last month, 75 fewer than in October of the previous year, representing a 23 percent drop. Compared with September, bankruptcies decreased by 8 percent.

In October, the bankruptcy rate, the number of bankruptcies per 100,000 companies, stood at 6.8. A year ago, that rate was 9 per 100,000. Since March, Statistics Netherlands has emphasized the bankruptcy rate, noting that it gives a clearer view of trends in company failures.

Similar to September, the hospitality sector saw the highest rate of bankruptcies in October. Just over 23 bankruptcies occurred per 100,000 hospitality businesses, down from more than 39 per 100,000 a year ago.

Other sectors also display notable differences in bankruptcy rates. In the industrial sector, the rate was around 19.5 per 100,000 companies, down from 32.9 a year earlier, while transport and storage recorded about 19.2 per 100,000, compared with 38.4 the previous year.

Over the longer term, the bankruptcy rate reached its peak in March 2015 at approximately 24.8 per 100,000 companies. It then declined, hitting a record low of around 3.4 in August 2021. The rate stabilized in 2024, followed by a modest downward trend starting in the autumn of 2024.