Bankruptcies, Q4 2000

After declining from 5 158 bankruptcies in 1993 to 3 634 in 1994, bankruptcy proceedings in Norway have remained stabile at around 3 500 per year in recent years. With that in mind, last years 10 per cent jump is not particularly dramatic.

Largest increase in Vest-Agder, largest decline in Aust-Agder

Of the countrys 19 counties, 12 saw an increase in the number of bankruptcy proceedings. Most bankruptcies, altogether 687, were in Oslo and accounted for 19 per cent of the bankruptcy proceedings on a national basis. The largest percentile increase in the number of bankruptcy proceedings was reported in Vest-Agder, where the number of filings jumped from 48 to 81, a 69 per cent increase. Sogn og Fjordane was second with a 61 per cent increase and Østfold third with 41 per cent.

Seven counties saw a reduction in the number of bankruptcy proceedings, with Aust-Agder reporting the biggest decline. In 1999, Aust-Agder had 50 bankruptcy proceedings while at the same time last year there were 41 filings, an 18 per cent decline. Nord-Trøndelag was next with a decline of 14 per cent.

More personal bankruptcies

Out of the total of 3 576 bankruptcy proceedings, 2 031 were business failures while 1 545 were personal bankruptcies covering self-employed persons and wage earners. The share of personal bankruptcies was 43 per cent, and has increased in relation to the same time in 1999, when it was 41 per cent.

The bankruptcies affected more employed persons in 2000 than in 1999. Altogether 8 164 employees were affected by bankruptcies in 2000, against 7 645 in 1999. It is mainly small businesses with small turnovers and few employees that go bankrupt. Eighty-seven of all bankruptcies took place in businesses with fewer than four employees, 12 per cent had between five and 24 employees and only 1 per cent had more than 25 employees. Furthermore, 72 per cent had annual sales of less than NOK 1 million, 21 per cent had between NOK 1 and 5 million, and 7 per cent had NOK 6 million or more in sales.

Increase in fishing, whaling and fish farming

In the business community the industry that has seen the biggest increase in the number of bankruptcies is fishing, whaling and fish farming. In 2000, there were 24 bankruptcies in this industry. This is more than double since 1999, when there were nine bankruptcies in the industry. Of all industries, construction has seen the largest reduction in bankruptcy proceedings compared with the previous year, with 15 per cent. Of 2 031 business failures, 735, or 23 per cent, were in wholesale and retail trade, making wholesale and retail trade the industry with the most bankruptcies.

The number of personal bankruptcies has increased by 16 per cent in relation to 1999, from 1 328 to 1 545. Of 1 545 personal bankruptcies, 398 were in the construction industry. This industry thus accounts for 26 per cent of personal bankruptcies.