The number of bankruptcies in Belgium has risen uninterruptedly in recent months. In May, nearly a thousand (988) businesses had to go out of business. In Flanders, a record number of bankruptcies has even been reported. According to the office Graydon, a financial information company, which compiles this data, the wave of bankruptcies expected following the pandemic period has arrived, and is gaining momentum. “We are now seeing a continuous increase, month following month, for the past eight months, in the number of declarations of bankruptcies“says Graydon.
The 988 bankruptcies represent almost double the number of companies at the end of their life in May 2021. May 2022 is the third worst month of May in this respect ever recorded in Belgium. It even holds the lead in Flanders, which last month saw a record 566 companies go out of business.
Since January, 4,092 companies have been declared bankrupt in the country, 55% more than the same period a year earlier. Bankruptcies have affected 6,711 jobs since the start of 2022.
The sectors concerned
The construction (809 companies since January) and catering (682) sectors were the most affected by bankruptcies. The most important end of activities in terms of number of jobs is that of B&E Cleaning in Bonheiden. Declared at the beginning of May, it leaves 129 people on the floor.
According to Graydon, despite the measures taken by the authorities to support businesses during the health crisis, small companies have had to massively reinject capital. “The effects of the most recent shocks – inflation, shortage of materials, changes in consumption, … – are for many of them the deathblow.e”.
The association of Flemish independents asks the unions to “come to their senses”
In a reaction published Wednesday evening, the association of Flemish independents, Unizo, said it feared that the worst was yet to come. It calls for measures such as the extension of the temporary unemployment system beyond the month of June, due to force majeure.
The organization also calls on trade unions to “return to reason“. “It is irresponsible for unions, in these difficult economic times when record numbers of bankruptcies are expected, to advocate for wage increases on top of indexation“, says Danny Van Assche. On the contrary, according to the managing director of Unizo, companies in difficulty should not apply automatic wage indexation.
