Record number of bankruptcies in the Netherlands

In the Netherlands 172,000 companies were established last year. This is offset by a record number of more than 129,000 companies that closed their doors permanently. This was reported by the Central Bureau of Statistics (CBS) Tuesday.

Like previous years, most companies opened their business in the business services industry. They were mainly consulting organizations. In 2013, nearly 14,000 start ups in these services were erected, which accounted for 8 percent of the total number of starters.

Online stores are number 2 on this list. In the retail sector more than 8,000 web stores started their business, a record number as well. In most cases it concerned web stores in clothing and fashion accessories.

Company closings

The number of online stores that stopped in 2013 is also the highest since measurement started in 2007. The number of online stores in home and garden products that stopped is even higher than the number of start-ups in that area. In recent years, the number of start-ups was already declining. The bad situation in the Dutch housing market plays a role, according to CBS.

From the record number of companies that stopped in 2013 was 8 percent due to bankruptcy. In 2008, at the beginning of the economic crisis, this was only 4 percent. Mainly consulting organizations stopped and seven out of ten are self-employed.

On net balance, the total number of companies that started compared to the previous year increased by more than 3 percent, to more than 1.4 million in total. Approximately one million of these are self-employed, such as farmers and shopkeepers. The Netherlands has 62,000 companies with 10 or more employees.

Source: AFN