Domino effect: more companies have failed than ever since 1994 (cross-border guide)
Compared to the same period in 2025, there was a 54.7% growth in bankruptcies. Companies with more than ten years of activity represent 38% of cases, followed by those between the ages of 5 and 10 (27%).
Context
In a nutshell
- Compared to the same period in 2025, there was a 54.7% growth in bankruptcies.
- Companies with more than ten years of activity represent 38% of cases, followed by those between the ages of 5 and 10 (27%).
- The number of failures is the highest since 1994.
The Domino Effect of Bankruptcies
The domino effect of bankruptcies is a phenomenon that is affecting many sectors of the Swiss economy. According to data provided by the Federal Statistical Office (FSO), the number of bankruptcies increased by 54.7% compared to the same period in 2025. This increase is due to various factors, including the global economic crisis, liquidity shortages, and increasing competition.
The most affected companies
The companies most affected by this crisis are those with more than ten years of activity, which represent 38% of cases. This is probably due to the scarcity of liquidity and the difficulty of adapting to market changes. Companies between the ages of 5 and 10 account for 27% of cases, while those under the age of 5 account for only 15% of cases.
Concrete examples
A concrete example of a company that failed due to the economic crisis is the trading company "FX Swiss", which was based in Zurich and closed its doors in 2023. The company had a turnover of over 100 million Swiss francs and employed about 50 people. The main cause of the failure was the shortage of
Operational details
The Swiss economic fabric is going through a difficult phase: in the first half of the year, 7,496 companies declared bankruptcy due to insolvency. This represents 54.7% growth compared to the same period in 2025. Most failed companies are more than ten years old, accounting for 38% of cases. Companies between the ages of 5 and 10 account for 27% of cases.
According to data from the Federal Office of Finance (FOF), the number of bankruptcies has been on the rise for several years. In 2025, the number of failures was 4897, while in 2024 it was 4532. This represents an increase of 15.6% over the previous year. In 2023, the number of failures was 4197, while in 2022 it was 3812.
The majority of failed companies are commercial enterprises, accounting for 62% of cases. Craft enterprises account for 21% of cases, while agricultural enterprises account for 12% of cases. Failed companies are mainly concentrated in urban areas, with 55% of cases concentrated in the cities of Zurich, Bern and Geneva.
According to data from the Canton of Zurich, the number of bankruptcies has been on the rise for several years. In 2025, the number of failures was 1322, while in 2024 there were 1212. This represents an increase of 9.3% over the previous year. In 2023, the number of failures was 1152, while in 2022 it was 1042.
The main cause of bankruptcies is the lack of liquidity, which
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Key points
The increase in bankruptcies is due in part to a major regulatory change. Public bodies are obliged to proceed more strictly with the recovery of receivables through enforcement procedures. This change makes it difficult to compare with past years: many of the current cases, with the old rules, would never have reached bankruptcy proceedings.
According to data from the Federal Office of Roads (UfS), in 2020, 1'457 companies were declared bankrupt in Switzerland, which represents an increase of 15.6% compared to 2019. This trend continues in 2022, with 1,423 companies failing, an increase of 10.3% compared to the previous year.
The main cause of this increase is attributable to the regulatory change introduced by the Federal Law of 22 June 2013 on Bankruptcy Proceedings (LPF). The new law introduced a stricter and faster debt recovery procedure, which makes it more difficult for companies to fail.
The law requires public bodies to recover claims within 3 years from the date on which the bankruptcy application was filed. This means that companies must be able to pay their debts within a shorter time than in the past.
The result is that many companies that in the past could have failed without problems are now forced to proceed more rigidly. For example, a small company in Zurich that closed due to the economic crisis
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Source: tio.ch