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European Union, highest number of failed companies since 2015

European Union, highest number of failed companies since 2015

© Reuters. European Union flags in front of the European Commission headquarters in Brussels, Belgium. Photograph: Eve Hermann/Reuters

(Reuters) – Bankruptcy filings in the European Union in the second quarter of this year reached their highest level since 2015, led by the hospitality and restaurant sectors.

This was announced by Eurostat. From April to June, the number of companies that closed grew by 8% compared to the previous quarter, marking the sixth consecutive increase.

The agency added that new company registrations declined slightly over the same period, although they are still higher than in 2015-2022.

While all economic sectors witnessed an upward trend in bankruptcies, hospitality and food services were the hardest hit, up 24% from the previous reading.

Businesses that closed in transportation and warehousing were 15% more than in the previous quarter, while the increase in the education, health and social activities sectors was 10%.

Eurostat noted that the number of bankruptcy applications was also higher than pre-pandemic levels, with the exception of the industrial and construction sectors, which recorded declines of 12% and 3%, respectively, compared to the fourth quarter of 2019.

(Translated by Camilla Puri, Editing by Sabina Suzy)

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