Number of bankruptcies continues to rise

The continuing financial crisis has led 5,524 businesses to close down in the first quarter of 2009, according to new statistics released on Friday.

The number of bankruptcies in March totalled 428, an increase of 22.6 per cent compared with the previous year, the Swiss Association of Creditors, Creditreform, said.

Figures show that 1,223 firms were declared insolvent in the first quarter, 18.6 per cent more than in the corresponding period in 2007 and representing the second highest level recorded in Switzerland after 2004.

Creditreform noted that the trend was set to continue and could lead to an increase in unemployment rates.

It added that the situation was particularly acute in central Switzerland, where Zug and Lucerne reported 40 per cent rises in insolvencies, and in Ticino where there was a 30 per cent increase. French-speaking Switzerland has been less affected with a rise of 9.4 per cent.

The service industry was hardest hit, comprising nearly 30 per cent of all insolvencies. Construction followed with 12 per cent.

The number of bankruptcies among individuals dropped by 18.7 per cent, with 462 people affected.

As a contrast, Creditreform said that the financial crisis had not prevented new companies from setting up business. It noted that in March, 3,079 new names had been registered, 8.5 per cent more than in the same month last year.