Fewer companies went bankrupt

24.06.2020 - 13:58
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 Mynd: Skjáskot - RÚV
22 active companies in Iceland were declared bankrupt this May. Surprisingly, given the global pandemic, that figure is 42 percent lower than in May 2019, when 38 went under. The figures seem to suggest government packages to help businesses through the crisis are working.

The new figures were released by Hagstofa Íslands (Statistics Iceland) and show that many of the bankrupt companies were in wholesale and retail, or in car repairs, numbering eight in total. Five collapsed companies were in the tourism sector. Two companies were in construction or infrastructure, and seven in other areas.

The definition of an active company is one that has a regular income and/or employees.

There were an average of 79 employees at each bankrupt company and their average turnover last year was 728 million krónur.

Both figures are much lower than May last year, when there were an average of 328 employees and 3.1 billion krónur turnover.

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Alexander Elliott
Project manager
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