{"id":297264,"date":"2024-08-02T06:50:11","date_gmt":"2024-08-02T04:50:11","guid":{"rendered":"https:\/\/www.travelreport.se\/?p=297264"},"modified":"2024-08-02T07:36:01","modified_gmt":"2024-08-02T05:36:01","slug":"bankruptcy-pressure-remains-high-in-july","status":"publish","type":"post","link":"https:\/\/www.travelreport.se\/en\/konkurstrycket-fortsatt-hogt-i-juli\/","title":{"rendered":"Bankruptcy pressure remains high in July"},"content":{"rendered":"

After two years of increasing bankruptcies every month, July marks another record month. A total of 684 limited liability companies were declared bankrupt, an increase of 14 percent compared to the same period last year. This marks the highest bankruptcy figure for the month of July in over 30 years. Bankruptcy pressure in Sweden remains high and an improvement is only expected towards the end of the year. The largest increase in July was in industry, car dealers and real estate companies.<\/strong><\/em><\/strong><\/p>\n\n\n\n

\ud83d\udcc1 Download all bankruptcies per month (excel)<\/a><\/p>\n\n\n\n

The situation in the Swedish economy continues to be tough, and the recession is hitting hard during the summer. July was the 24th consecutive month of an increase in bankruptcies. So far this year, a total of 6,191 limited liability companies have gone bankrupt \u2013 the same number as in all of 2022. Compared to the same period last year, the increase is 37 percent. The majority of all bankruptcies are small or medium-sized companies, although more larger companies are affected.

\u2013 Now we are seeing another month with the highest number since our measurements began in the 90s. Unfortunately, it is too early to talk about any turnaround when bankruptcies have risen every month for two years and it is still a tough time for many companies. The summer is a tough period for several industries that are struggling to survive when operations are at half speed or closed during the holidays. We hope to see the light at the end of the tunnel towards the end of the year, says Henrik Jacobsson, CEO of Creditsafe.

Biggest increase for car dealers and real estate companies<\/strong>
During July, bankruptcies for car dealers increased by 91 percent and real estate companies by 87 percent. Both industries are also at the top in terms of the largest increase so far this year. The industrial sector had the strongest increase of 133 percent during July. Hotels and restaurants increased by nine percent. On a positive note, bankruptcies in the retail sector instead decreased by 13 percent this month. However, for the period January to July, all industries in Creditsafe's statistics show an increase.

Several large construction companies in bankruptcy<\/strong>
The construction contractor Lillsk\u00e4r Produktion in Uppsala became the biggest bankruptcy of the month. The company has had several ongoing projects and in its latest financial statements reports a remarkable increase in turnover from 5 million to 190 million. Next comes another construction contractor, NOKON Byggnads in Vagnh\u00e4rad, with a turnover of 185 million.<\/p>\n\n\n\n

In total, six limited companies had a turnover of over 100 million, of which three were construction companies, a sports and outdoor store (Addnature), a car dealer and a haulage company.

Deferred tax liabilities from deferrals<\/strong>
Almost 16 percent of all bankrupt companies this month had a tax deferral, with a combined debt of SEK 141 million to the Swedish Tax Agency. The largest debt was held by the construction company AB H\u00e4ggmark & S\u00f6ner, with SEK 20 million in deferred tax liabilities.

Many employees affected by bankruptcy<\/strong>
Although the bankruptcies mainly affect smaller limited companies, the number of employees affected is very high. In July, 2,822 employees were affected when their employers went bankrupt, which is 57 percent more than last year. So far this year, 21,000 jobs have been lost due to bankruptcy, compared to 12,600 the year before.<\/em><\/p>\n\n\n\n

Considering the size of the bankrupt companies, the average turnover this month was 6.1 million and the median turnover was 1.1 million.<\/p>\n\n\n\n

Startups are climbing the ladder
<\/strong>During the summer month of July, 3,565 new limited liability companies were started. This is eight percent more than the same period last year. There are currently a total of 774,700 limited liability companies in Sweden.<\/em><\/em><\/p>\n\n\n\n