Creditreform has analysed the numbers of bankruptcies for Luxembourg in 2019 and has compared them with the numbers from the previous year. Herbert Eberhard, the Managing Director of Creditreform Luxembourg SA, underlines: “With an increase of 5,69%, to 1263 bankruptcies in 2019, the number of bankruptcies in Luxembourg remained almost the same at an all-time high compared to the previous year.” Preliminary figures from Belgium show a 9% increase in bankruptcies, although a change in the law also affects the increase. Corporate insolvencies in the Trier region rose by 23.44%. In Germany, the slight decline in corporate insolvencies has led to the lowest level in 25 years.  

The number of bankruptcies in the Grand Duchy of 2019 rose to 1.263. This figure includes the bankruptcies from December 2019, which were only published in 2020. It is an increase of 5.69% compared to the previous year. 
 
The number of companies over 5 years of age that went bankrupt during this period remained at a high level of 75.85%, even though a slight decrease was noted in comparison to 2018 (78.24%). The share of bankruptcies of companies younger than five years old is 24.15% in 2019 and has increased slightly compared to 2018 (share 21.76%). 
 
According to the competent judicial districts, an increase of 5.47% was reported in Luxembourg with 1138 bankruptcies (previous year 1079). There were 125 cases in the judicial district of Diekirch in 2019 (66 in the previous year). This is an increase of 7.76%. Creditreform has also scrutinized the defaults in the various industries.  

 The service sector is still the leader with 884 cases in 2019 (832 in 2018), which rose by 6.25%. Despite the good construction industry, bankruptcies in the construction sector rose by 9.82% from 99 to 124 companies. They are essentially smaller companies. With 253 company collapses compared to the previous year (254), trade has remained almost the same. In manufacturing, there were only 2 bankruptcies in Luxembourg in 2019. In 2018, however, there were 10 (- 80.00%). 
 
Fortunately, no well-known companies went bankrupt in 2019 that would have caused a major job loss. Small companies are mostly affected. 
 
In the legal forms of companies, there was a significant increase in the corporations (SA) by 16.38% or 270 (232 in 2018). The limited company (Sàrl), as the most frequently represented legal form, continues to have the largest single share in bankruptcy proceedings with an increase of 8.43% to 733 bankruptcies (2018: 676). 
 
Creditreform Luxembourg SA assumes that, due to the economic transformation in Luxembourg, bankruptcy development in the Grand Duchy will continue to be at a high level in 2020, notes Herbert Eberhard.