Bankruptcies

2/21/223:10 PM Iris Ørnhaug

Bankruptcies

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A total of 1572 companies went bankrupt in northern Norway from the fourth quarter of 2016-3. quarter 202. More than half of the bankruptcies were registered in Nordland, and then naturally enough in the largest cities: Bodø, Rana and Narvik, where a lot of business activities are also located. We see a similar picture in Troms and Finnmark.

It is within construction that we find most bankruptcies, followed by retail and catering.

The Korona pandemic and subsequent infection control measures, which among other things led to shops, hotels and restaurants having to close for periods, led to many expecting a wave of bankruptcies in the wake of this. It has not happened. From the second quarter of 2020, the number of bankruptcies in northern Norway has been 261, and then roughly within the same industries as otherwise.

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If we look at the proportion of bankruptcies in relation to the total business sector, Northern Norway is at about the same level as elsewhere in the country. From 2016-2017, the proportion of bankruptcies in northern Norway increased from 0.2 per cent to 1.1 per cent. Secondly, the share increased slightly over the next two years, but decreased by 0.2 percentage points in the corona year 2020.

There are large variations within the three counties in northern Norway. Many smaller municipalities have a limited business sector, where bankruptcy in one or two companies has a major impact on bankruptcy statistics.

If we look at the industries, which have the largest share of companies that go bankrupt, food and restaurant outlets stand out with a bankruptcy rate of between 1.9 and 4.7 per cent. The highest proportion of registered bankruptcies for this industry was in 2020, but where services related to financing and insurance activities had a higher proportion (7.6 per cent).