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Lindorff: Increasingly larger companies go bankrupt

Lindorff Bankrupt DebtCEO of Lindorff, Anette Willumsen. Photo: Bo Mathiesen / Lindorff

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Lindorff: Increasingly larger companies go bankrupt

The proportion of bankrupt companies in Norway has flattened out, but bankruptcies affect companies with more and more employees.

 

It is shown in figures from the debt collection company Lindorff, reiterated in Finansavisen.

Over the past 15 years the number of employees per bankrupt company in Norway has varied. The base level was 0.6 employees in 2007 and increased to an average of 3 employees per bankruptcy after both the dot com bubble burst, and after the financial crisis. Now there is an average of 7.5 employees in any limited company which goes bankrupt, this is much higher than in recent years.

Evenly spread out

According to Lindorff, it is not the case that large individual bankcruptcies that is the cause of the change in employees affacted. Nor is the incidence higher in the regions where employees in petroleum-related industries have ben hit hard: There are some regional differences, but the average number of employees in affected companies is five or higher in all parts of the country.

The number of bankruptcies was expected to increase after the oil price drop, and in the 12 months leading up to the 1st quarter there were 8.7 per cent more bankruptcies than in the previous 12 months. In the same period, however, the number of limited companies has risen, so the bankruptcy share remains stable.

 

© NTB Scanpix / Norway Today

 

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