The number of companies and individuals declaring bankruptcy rose 9.1% last year, which coincided with a gradual withdrawal of state-backed financial support during the Covid-19 pandemic.
Some 14,081 businesses and individuals filed for bankruptcy in 2021, which is 1,169 more declarations of insolvency than in 2020, the Federal Statistical Office said on MondayExternal link.
The large increase in bankruptcies can be partially explained by the withdrawal of financial measures that were introduced when the pandemic struck in 2020.
This included payments to cover wages for workers on reduced hours and emergency loans backed by the state. In addition, implementation of bankruptcy laws was eased to allow companies more leeway before they were obliged to declare insolvency.
However, these measures have been phased out in stages, which has removed the financial safety blanket propping up some failing companies that struggled to recover from the economic shock of the pandemic.
Financial losses resulting from bankruptcies in 2021 amounted to CHF4.2 billion ($4.5 billion), which is higher than the CHF3.3 billion average in the previous 17 years.
Some CHF1.7 billion resulted from three unusually large bankruptcy cases, the Federal Statistical Office said, without naming the affected parties.
In the first few months of this year, the situation appears to be getting worse. Company bankruptcies increased 40% in January and February compared to the same months in 2021, says the Swiss association of creditors, Creditreform.
Creditreform says it expects company insolvencies to increase by more than a quarter for the whole of 2022 compared to 2021.
Popular Stories
More
Foreign Affairs
How a top Swiss university is screening Chinese students
L’Oréal acquires South Korean subsidiary of Migros’ cosmetics brand
This content was published on
French cosmetics firm L'Oréal is acquiring Gowoonsesang Cosmetics, the South Korean subsidiary of the Migros-owned Mibelle group, for an undisclosed sum.
Sharp hike in number of protected historic monuments in Switzerland
This content was published on
In 2022, there were close to 91,000 protected historic monuments in Switzerland, 21% more than in 2016, said the Federal Statistical Office.
Switzerland adopts further EU sanctions against Russia
This content was published on
Switzerland has added several dozen names to its list of sanctioned persons or entities from Russia after adopting the amendments made by the European Union.
Snowfall causes travel restrictions in much of Switzerland
This content was published on
Heavy snowfall in several regions of Switzerland caused restrictions in road and rail traffic on Monday morning, though conditions eased by the afternoon.
Swiss major-general named acting head of UN observer force in Golan Heights
This content was published on
Major-General Patrick Gauchat has been appointed acting head of the United Nations Disengagement Observer Force (UNDOF) in the Golan Heights.
Accidents up sharply among older skiers in Switzerland
This content was published on
People over the age of 40 account for more than half of all ski injuries in Switzerland, a new study by insurance firm Suva shows.
Switzerland proposes strengthening rights of people with disabilities
This content was published on
The Swiss government is proposing a package of new legislative measures to promote inclusion of people with disabilities in all areas of life.
This content was published on
The Swiss artist Kurt Laurenz Metzler, known for his colorful sculptures made of fiberglass and polyester, has died in Zurich at the age of 83.
Historic Swiss bathhouse on Lake Constance destroyed in a fire
This content was published on
In the northern Swiss town of Rorschach, the 100-year-old Badhütte (bathing hut) on the shores of Lake Constance burned down early Monday morning.
Trump picks Callista Gingrich as ambassador to Switzerland
This content was published on
Incoming United States president Donald Trump has named Callista Gingrich as the next ambassador to Switzerland. Gingrich was posted to the Vatican under Trump's previous term.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Covid bankruptcies: Swiss liquidators ramp up hiring
This content was published on
As employers struggle to stay afloat during the Covid-19 pandemic, one employer has launched a recruitment drive: the Zurich liquidation service.
Bankruptcy laws eased for Covid-affected companies
This content was published on
The measures have been announced to save firms going under with a resultant loss of jobs. Non-essential businesses have been forced to close their doors for several weeks as part of a government plan to combat the coronavirus pandemic. The Swiss state has provided more than CHF60 billion in the form of bridging loans, paying…
This content was published on
Tourism in Switzerland is expanding and stagnating at the same time. In the last 30 years the stock of holiday homes has increased, while the number of hotels has fallen. However the number of guest rooms per hotel and of the number of beds overall has grown. This is not a bad development in itself but…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.