234 shut up shop but businesses increase by 1,000 during 2009

Despite 234 businesses closing down, the number of commercial activities increased last year, a ministry spokesman told The Times Business. By November last year, 1,200 new licences were registered, meaning the number of businesses in Malta in 2009 increased by at least 1,000.

Last year, businesses ranging from manufacturers to market traders shut up shop between January and September, a list provided by the Finance Ministry shows. Minister Tonio Fenech told Parliament earlier this month that 234 businesses cancelled their registrations and old trade licences in the three quarters of 2009.

Cancellations included four manufacturers of rubber and plastic goods, machinery and furniture; 39 retailers including computer stores, pet shops, beauty shops, boutiques, stationers, and retailers of electrical goods; 11 hairdressers, beauty salons and personal care service providers; and 26 street hawkers and market traders. The 130 cancellations of old licences included 11 grocers and greengrocers; nine businesses trading in domestic appliances, office equipment, hi-fi and spares; nine fixed Valletta hawkers; seven in clothing; six in farming and fishing equipment; six factories, farms and lime kilns; five importers and wholesalers; five mechanics and sprayers; and three printing presses.

Another 212 businesses transferred trading licences to other activities. One in three was a retailer shifting its line of business; 21 included confectioners, greengrocers, butchers and fishmongers; 53 retailers including boutiques, stationers, and shops selling cosmetics and electrical goods; and nine in the beauty business.

Meanwhile, 128 old trade licences were transferred, including 27 grocers and greengrocers; 12 trading in clothing; eight mechanics and sprayers; six stationers and booksellers; six catering and confectionery businesses; five butchers; and five hairdressing salons.

A ministry spokesman said the figures failed to point to a trend in any sector and stressed that licence cancellation did not necessarily mean the business has closed down.

The business could have been taken over by a new owner or the same owner needed to transfer the line of his business. These moves not always fell under transfer lists, particularly if businesses were licensed by different authorities like the Malta Tourism Authority, the Trade Department, the Malta Financial Services Authority, or the police.