We also explore how the spillover effects differ depending on the “fate” of the bankrupt establishment, that is, whether it continued operations, remained vacant, or was reallocated to a different user.Consistent with the notion that liquidation leads to a disruption of existing agglomeration linkages,we find that the negative spillovers on local employment are larger if the bankrupt establishmentstays vacant or is redeployed to a different industry, while they are smaller if the establishmentremains with its current user or remains in the same industry.