During the first six months of 2022, 5,139 bankruptcies were declared throughout Belgium. This represents a 56.4% increase over the first six months of last year, according to business information office Graydon. It was in Flanders that the increase was the strongest: +72.4%, or 2,850 declared bankruptcies. In Brussels, the number of bankruptcies increased by 67.8% to 1,027 and in Wallonia the increase was much lower than elsewhere in the country. There, 1,110 bankruptcies were pronounced, an increase of 18.1%.
In the province of Antwerp, the increase is “simply phenomenal“: +124 percent to 1,165 auction orders, the highest number of auction orders in the first half of the year in the province.”Historically, the province of Antwerp has always been the forerunner when it comes to bankruptcy proceedings“, note Graydon.
In the first half of the year, it was mainly construction companies that went bankrupt across the country (1,011), followed by the catering sector (845). In the transport sector, the 2013 record was beaten with 328 bankruptcies.
62.2% more
In June alone, 1,047 Belgian companies went bankrupt, which is 62.2% more than twelve months earlier. This is the ninth consecutive month of increases. “The increase in June is the largest so far. While in October we were still talking regarding limited growth, we see the increase month following month – except in April 2022 – getting stronger.“
In Flanders, the rise was strongest in the sixth month of the year. This is an increase of 89%, to reach 618 declarations. This also results in a record for the month of June, following record figures in Antwerp, East Flanders and Limburg. In June, a total of 1,481 jobs were put at risk following a bankruptcy judgment, including 737 in Flanders.
Moderating measures
This finding, which may seem alarming, can be explained by the lifting of numerous measures – at federal, regional and local level – to support businesses during the health and economic crisis caused by the Covid-19 pandemic.
For example, as explained the Belgian statistical office Statbel on its websitethe ONSS grants amicable payment plans for a maximum period of 24 months for the settlement of all contributions and sums due for the year 2020. At the ONEM level, all temporary unemployment due to the coronavirus (or the conflict in Ukraine) can be considered temporary unemployment for force majeure corona until June 30, 2022.
Measures which have had a moderating effect on the number of bankruptcies declared since March 2020.
By way of example: the number of bankruptcies recorded in May 2022 is certainly higher than that of the same month in 2021 (+94.0%) and in 2020 (+249.3%) but is nevertheless lower than that of 2019 (-2.2%).
>> Read also: “Zombie companies”, “failing public budget”…: Why Belgium will experience so many bankruptcies in 2022
