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Corporate failures in Sweden rose in August


  

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Monday, 05 September 2011
After a period of continuous decline in corporate failures in the past periods in Sweden, the trend has now been broken and corporate bankruptcies have not turned up and are rising.

The decline in corporate failure was observed up to and including July but as from August, the situation changed and corporation started falling like nothing before, and "A little unexpected," said Roland Sigbladh of the credit reporting agency UC.

In August, 381 companies in Sweden went bust, 18 percent more compared with 2010. It was mainly among private service providers, carriers and IT companies that saw increases in bankruptcies.
Geographically, V�stra G�taland (Gothenburg region) and Sk�ne County (southern Sweden including the city of Maln�) that saw much of the increase, according to credit reporting agency, UC, which published the figures

According to Sigbladh, of UC, the increase in bankruptcy is as a result of the slowdown in the economy.
“Those who suffer first are the companies that have had low profitability and poor liquidity even during times when the economy was doing fine. Now they fall over the edge.”

He would not want to believe that there will be a quick change in the trend of events.
“I want to have at least a few months to see a clear trend. But the uncertain economy tends to mean more problems for companies.”

The construction sector stood out and showed stark decline in business failures in August.
“It is often the case that they have been contracted for a variety of construction projects and their implementation will continue, even if the economy turns during the construction period.

As for service companies, consultants and others, their commitments can, of course, be cancelled almost immediately,” says Sigbladh.
The number of bankruptcies in various counties

August monthly corporate bankruptcies broken down by county and change from the corresponding month in 2010:
County Bankruptcies Change (percent)
Stockholm County
104
8
Uppsala County
24 33
S�dermanland . 16
00
�sterg�tland
17 31
J�nk�ping county
12
-25
Kronoberg
6 200
Kalmar
5 25
Gotland
1 0
Blekinge
9 350
Sk�ne county
57
27
Halland county
17
183
V�stra G�taland county
56
19
V�rmland county
12
100
�rebro
9 :29
V�stmanland
10 43
Dalarna
9 50
G�vleborg
7
-36
V�sternorrland
6
-50
J�mtland
3 200
V�sterbotten
8 14
Norrbotten
5 -55
Source: UC

By Scancomark.se Team

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