Swedish Bankruptcies Soar as Virus Hits Hotels and Restaurants

Bankruptcies among Swedish restaurants and hotels jumped by 123% in March as measures to contain the coronavirus pandemic stopped people from making trips and socializing, Bloomberg News reported. The transport sector was also hit hard with bankruptcies rising by 105% in March compared to the same month a year ago, according to a statement from the business and credit reference agency UC. The overall number of companies going bust in Sweden last month increased by 9%, it said. “It’s clear that the virus is hitting the consumer facing and labor intense service sector extra hard,” Bloomberg economist Johanna Jeansson said. “This means pressure on the government to deliver even more support to help small and middle sized companies survive.” Sweden’s Social Democrat-led government and its coalition partners earlier this week announced new labor market measures after 36,800 workers were given notice in the period March 1 through 27. Read more