Brussels (Brussels Morning) – In the first half of 2024, Flanders saw a record 3,537 bankruptcies, a 5% increase from last year. The construction sector was hardest hit, with significant job losses across various industries.
In Flanders, the business courts have declared 3,537 bankruptcies in the first six months of this year. This is evident from data from the trade information agency GraydonCreditsafe. This is the highest number ever during the first half of the year.
What Sectors Are Most Affected by Flemish Bankruptcies?
Compared to the same period last year – which was also a record – bankruptcies in Flanders increased by more than 5 per cent. Most bankruptcies are in the construction sector, where there is an increase of about a fifth with 856 verdicts. This is followed by the hotel and catering industry (587) and the business services sector (485).
According to GraydonCreditsafe, the significant increase in bankruptcies in the construction sector is partly due to “the purging of fraudulent companies” in certain judicial districts. “In addition, we see that companies that act earlier in the final phase of a construction project are leaving,” says the trade information office. This would not only be due to the sharply increased prices of materials and labour costs, but at the end of construction projects “more invoices would also remain unpaid”.
There are a record number of bankruptcies in Flemish Brabant and East Flanders, while these have also increased in Limburg. Antwerp and West Flanders, on the other hand, are recording
declines.
How Have Construction Bankruptcies Impacted Jobs in Flanders?
The Flemish bankruptcies are associated with the loss of 9,265 jobs, more than a third more than during the first half of 2023. The bankruptcy of bus builder Van Hool – from Koningshooikt – with 2,535 lost jobs – is particularly important. The bankruptcy of the Waregem textile company MC Three Carpets comes in a distant second place, with 262 jobs lost.
How Did Van Hool’s Bankruptcy Affect Flemish Job Losses?
According to Van Hool, job losses due to bankruptcies in Flanders in the first half of 2024 were highest in the automotive industry (2,539). Construction (1,223) and the catering industry (1,192) complete the top three.
For the whole of Belgium, GraydonCreditsafe reports a total of 6,008 bankruptcy decisions during the first six months of 2024. This is an increase of 7 per cent compared to the same period in 2023 and the highest number since 2019 (6,224). As a result, a total of 14,677 jobs were at risk.
Federally, most bankruptcies can also be found in construction (1,352) and the catering industry (1,035). GraydonCreditsafe also points to a striking increase in the number of judgments among garage owners, for whom “all records are being shattered”: with 252 bankruptcies, there is a fifth more. “This is partly explained by the strong increase in the number of electric vehicles that require significantly less maintenance, as well as the changed market vision of the major car brands that focus on fewer but hyper-sophisticated showrooms,” it said.
