More companies went bankrupt again in March than a year earlier. Figures from the Chamber of Commerce (KVK) show that 160 companies went bankrupt in March this year, 22 percent more than a year earlier. Due to the corona support from the government, far fewer companies went bankrupt from 2020, but that period now seems to be over.
A combination of financial aftershocks of the pandemic and high energy costs and inflation is the cause of the bankruptcies, Joris Knoben, professor of Business Economics at Radboud University, told the Chamber of Commerce. “We are now at a tipping point for business.” Knoben expects the trend to continue. “The coming months are going to be exciting for many entrepreneurs.”
In total, more companies stopped in March, while slightly fewer new companies were added than last year. In the pandemic, many new web shops were established, according to the Chamber of Commerce figures, and that “buzz” has now ended. Last month many couriers and carriers stopped.
At the start of the corona crisis, there were fears of a wave of bankruptcies as soon as the corona support would expire. That was not too bad, as it turned out last year. However, at the end of last year companies had just under 20 billion euros in debts with the tax authorities, because they had applied for a deferment of payment. They must repay those debts in the coming years.
Also read: Which companies ‘borrow’ billions of corona euros from the tax authorities?