Last year was not an easy one for many businesses, especially those specialized in retail. According to a January 2025 report by Statistics Netherlands (CBS), more than 4,270 companies filed for bankruptcy last year. Compared to the 3,272 that went under in the previous year, 2024 witnessed a 30% increase, and the highest number of bankruptcies in eight years: in 2013 more than 9,431 businesses had to file for bankruptcy, due to an EU-wide economic crisis.
Bankruptcies in retail
The sector of the economy that experienced the most bankruptcies was the retail sector with 811 businesses. The best-known bankrupt company in 2024 was Blokker, the household goods chain which was a Dutch icon on every shopping street in the Netherlands. For generations, Blokker had been a household brand name; the business was founded in 1896 by the Blokker family and remained in the family until today. In 1975, Jaap Blokker, the grandson of the founder, took over the business and turned it into an imperium. When Jaap Blokker passed away in 2011, the company had more than 3,000 stores throughout the Netherlands and some 25,000 employees. In 2014, Blokker already experienced a loss of 20 million euros and had to let go many of its employees. But in 2024, losses became too big and Blokker had to close all its stores. Some analysts argue that Blokker went bankrupt as it did not adapt to the new consumer trends of online shopping.
Construction and specialized business services
According to the CBS report, the construction sector with 618 bankruptcies was the sector with the second-highest number of bankruptcies in 2024, compared to 479 business failures in 2023. The increase of 139 bankruptcies is primarily attributed to specialized construction, including construction installation and finishing companies. Next was the business services branches with 509 bankruptcies, compared to 352 business failures in 2023. The number of bankruptcies was higher than a year earlier especially in activities of head offices, management consultancy activities, architectural and engineering activities. On the bottom of the list of bankruptcies for 2024 was the agricultural sector with only 26 bankruptcies, five more than in 2023. Only one sector of the Dutch economy saw a lower number of business failures in 2024.
Global rise
The rise of bankruptcies in not only a Dutch phenomenon. In the US, many major retail chains and restaurants have also taken a blow and closed their doors, including the plastic food storage company Tupperware and restaurant chain Red Lobster. In September 2024, Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown, announced: “The party is over for Tupperware”. The company, which had been known for empowering women to start their own businesses by hosting Tupperware parties in their homes, in recent years racked up a debt of 55 million dollars after declining profits due to consumers turning to eco-friendly alternatives for plastic food storage containers.
Global economic downturn
Economists argue that one of the reasons for the higher number of bankruptcies in the Netherlands but also globally is a world-wide economic slowdown, coupled with rising inflation and interest rates. Since the war in Ukraine started in February 2022, energy prices have increased significantly, causing inflation and interest rates to rise. Consequently, consumers have had to keep a tighter hold on their household spending. However, on a good note, the January 2025 CBS report on bankruptcies in the Netherlands does indicate a positive trend. The majority of bankruptcies occurred in the first half of 2024, not the second. In fact, in December 2024 there were only 318 bankruptcies compared to 390 in December 2023.
Written by Benjamin B. Roberts