The number of bankruptcies in Finland has seen a significant increase in the first quarter of 2023, according to a report by Suomen Asiakastieto Oy, a leading credit information company. The report reveals that by the end of week 13, 676 companies had been declared bankrupt, a 30 percent increase from the same period last year, and the highest figure in the past 15 years. This development is a cause for concern, as it indicates that many Finnish companies are facing severe financial difficulties.
The COVID-19 pandemic has been cited as the primary reason for this increase in bankruptcies. Although there was no significant surge in bankruptcies during the pandemic, many companies have now exhausted their reserves and are finding it difficult to keep up with rising costs and declining demand. "Buffers have been used up in many companies, and they can no longer respond to rising prices and falling demand. This is causing even quite large companies to go bankrupt," said Jaakko Nors, a product owner at Asiakastieto.
The construction industry has been hit the hardest, with over 150 construction companies going bankrupt in the first three months of the year, a third of which were building houses. Among the companies that have gone bankrupt are several long-established construction firms with tens of millions of euros in revenue and dozens of employees. The retail and restaurant sectors have also been significantly impacted, with 86 companies in the retail sector and approximately 60 restaurants closing down.
The increase in bankruptcies is a concerning development that could have significant implications for the Finnish economy. Bankruptcies not only lead to job losses but also impact the overall economic health of a region or country. It is important for the government and businesses to work together to find ways to support struggling companies and industries during these challenging times.
To prevent further bankruptcies, it is essential for companies to focus on maintaining strong financial health, seeking professional advice if necessary, and finding ways to adapt to changing market conditions. The government can also play a role by providing financial support to struggling companies, promoting economic growth, and implementing policies that reduce the risk of bankruptcy.
In conclusion, the increase in bankruptcies in Finland is a worrying trend that highlights the significant impact of the COVID-19 pandemic on the country's economy. The government and businesses must work together to find ways to support struggling companies and industries and prevent further bankruptcies. By doing so, the country can emerge stronger and more resilient from the pandemic.
Top 20 bankruptcies in Finland during weeks 1-13/2023
No. Name Industry Turnover (M€) 1 Saagatalot Oy Residential and other building construction 28.3 2 Rakennusliike Jusmar Oy Residential and other building construction 27.5 3 FM-Haus Oy Other building carpentry and joinery 23.2 4 Evesa Oy Residential and other building construction 19.0 5 Autohub Oy Retail sale of cars and light motor vehicles 19.0 6 Oma Rakennus Oy Other specialized construction activities 16.0 7 Kuljetus AJA Oy Road freight transport 12.0 8 Jätehuolto Laine Oy Collection, treatment and disposal of non-hazardous waste 11.3 9 Rakennusliike Karjaluoto Oy Landscape service activities 10.3 10 JAM Trading Oy Development of building projects, Construction of buildings 9.2 11 Arina Trio Oy Electrical installation 8.6 12 Vujema Oy Residential and other building construction 8.6 13 Khimaira Oy Manufacture of other furniture 6.8 14 Raita Sport Oy Manufacture of sports goods 5.8 15 Vahva Toimitilat Oy Residential and other building construction 5.6 16 SB Rakennus Oy Residential and other building construction 5.3 17 Meandi Oy Industrial and engineering design etc. 4.9 18 Infraneliö Oy Site preparation work 4.8 19 Scandiservice Oy Other technical services 4.5 20 Walttia Oy Residential and other building construction 4.4 Source: Suomen Asiakastieto Oy
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