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Swiss company bankruptcies skyrocket

Construction site
A large number of construction companies have recently gone bust. © Keystone / Laurent Gillieron

The number of company insolvencies in Switzerland rose 22% in the first six months of the year compared to the same period in 2021.

Some 581 construction firms went bankrupt between January and the end of June, out of 2,822 companies in all sectors, according to research group Dunn & Bradstreet.

+ Reduced M&A appetite among SMEs in Switzerland

The financial and service sector industries saw one of the largest percentage rises in bankruptcies with a 31% increase in businesses going bust. Some 30% more hotels and restaurants also went out of business.

“Bankruptcies increased significantly in all major sectors,” said Dunn & Bradstreet on Wednesday, highlighting a large number of service industry failures.

+ The positives and negatives of interest rate rises

Amid uncertain economic conditions and a rise in interest rates, which makes it more expensive to get bank loans, the rate of start-ups declined compared to last year.

New additions to the Swiss company register fell 4% in the first half of 2022, particularly among financial start-ups that saw 27% fewer new firms than in the first six months of 2021.

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