Swiss businesses hit a wave of bankruptcy!

class=”sc-3778e872-0 cKDKQr”>

The weather is getting thinner for entrepreneurs in Switzerland. Often very thin. In the first three months of the year, corporate bankruptcies increased by 36 percent to 1,624. This came after bankruptcies soared to record levels the previous year. Business information service Dun & Bradstreet has examined the bankruptcies of companies registered in the trade registry.

Bankruptcies increased the most in retail: 95 companies had to permanently close their doors. That’s more than double what it was a year ago! The bankruptcy of the health food store Müller, which has 37 branches, was a prominent event in January. Online stores, high rents and the home office trend are creating problems for stagnant commerce. “Visitor frequencies have increased again this spring, but not everyone can benefit,” Dagmar T. Jenni (55), Director of the Swiss Retail Federation, tells Blick.

Intensified price war with consequences

According to Jenni, inflation has increasingly focused on prices. “Customers pay more attention to discounts.” The result is an aggressive price war. According to the association director, small companies with little bargaining power are at a disadvantage compared to suppliers here.

The number of corporate bankruptcies is rising in waves this spring: no coincidence. During the 2020 and 2021 pandemic years, the federal government has also kept failed companies afloat with Covid loans that would otherwise have vanished from the scene. The current wave of bankruptcies is at least partially a correction.

The final decision of the Federal Council is pouring in for companies that are about to make a living: on March 31, Covid increased interest on loans.

Central Switzerland most affected

However, the overall tightening of the economic framework also poses problems for fitter companies. Bank loans are becoming more expensive, and higher energy prices and rising fees are also affecting companies. Due to the shortage of skilled workers, many people are able to negotiate significantly higher wages when hired.

Industries with low margins sense this particularly quickly: the number of bankruptcies in the construction industry skyrocketed by 76 percent. In the automobile sector, it increased by 62 percent. For years, workshops have realized that more durable vehicles require less repairs. The increasing proportion of electric vehicles is also a challenge for small looms. It is known that the accommodation sector is also in a difficult period, with bankruptcies increasing by 46%.

There are not only big differences between sectors. Depending on the region, significantly more company heads are flooded. Corporate bankruptcies in central Switzerland increased the most at 56 percent. It is followed by the cantons of Valais, Vaud and Geneva and southwestern Switzerland, up 38 percent from the previous year.

Source :Blick