Major decline in hotel and restaurant bankruptcies

Despite the turmoil in the financial markets, the stock market crash, interest rate hikes and unstable exchange rate, the number of bankruptcies in Norway dropped by 18 per cent in the third quarter of 1998 compared with the same quarter last year. The number of bankruptcies for the country as a whole declined from 789 to 649 in the third quarter.

Altogether 2,405 bankruptcy proceedings have been commenced so far this year. This is down four per cent compared with the three first quarters of last year, when 2,494 bankruptcies were commenced. Only four of Norway's counties have had an increase in the number of bankruptcies in the first three quarters. Telemark accounts for the biggest increase, with 21 per cent. Next is Oslo, which reported a 17 per cent increase, Nordland with four per cent and Østfold with three per cent.

Positive trend for hotels and restaurants Stories about bankruptcies and business owners who repeatedly file for bankruptcy in the restaurant sector frequently make the news, particularly in Oslo. It has been claimed that there are too many restaurants, bars, clubs etc. in relation to the population, that there are too many businesses chasing niche markets and that too many operators are amateurish or deliberately run their business into the ground.

The figures for the hotel and restaurant sector in Oslo show, however, a 26 per cent decline in the number of bankruptcies compared with the same period last year.

New Statistics
Bankruptcy proceedings, 3rd quarter 1998.
The statistics are published quarterly in the Weekly Bulletin of Statistics. For more information, contact: Svein.Lotsberg@ssb.no, tel. +47 21 09 45 26, or Dan.Gallefoss@ssb.no, tel. +47 21 09 45 20.

Weekly Bulletin issue no. 46, 1998