Swedish bankruptcies skyrocket

Swedish bankruptcies skyrocket
September was a tough month for businesses in Sweden, with bankruptcies up 20 percent from the same month last year.

New figures from credit information company UC show that bankruptcies in Sweden through the first three quarters of 2008 are up 5 percent compared to the same period last year.

“The large increase in bankruptcies is cause for concern, but it’s a reflection of the prevailing economic conditions,” said UC marketing director Roland Sigbladh in a statement.

The largest increases in bankruptcies have occurred in the construction, transportation, restaurant, and service industries.

So far this year, 38 percent more transportation companies have gone belly up compared to the same period last year. The corresponding figure for the restaurant industry is 17 percent, while 8 percent more construction firms have filed for bankruptcy.

And UC expects the trend to continue in the months ahead.

“After several years of decreasing bankruptcies among Swedish companies, an increase in the number of bankruptcies is expected and things like worryingly tough in several industries, which probably means that bankruptcies are going to increase significantly throughout the autumn and into 2009,” said Sigbladh.