Number of company bankruptcy 2025: A worrying increase!

Number of company bankruptcy 2025: A worrying increase!

Bietigheim-Bissingen, Deutschland - The reported company insolvencies in Germany show an extremely dynamic picture. A record of 21,812 bankruptcies was recorded for 2023 - the highest level since 2015. Various credit agencies are excited and predicted that there are also more company bankruptcies in 2024 than in the previous year. This development is not surprising because the state support measures for alleviating corona pandemic have now expired. Companies are currently struggling with high energy prices, growing bureaucracy and a noticeable political uncertainty. The east of Germany feels special pressure because the highest climbs in the new federal states can be observed. Bietigheimer Zeitung also reports about the considerable demands of the believers in the first Quarter 2025 was around 19.9 billion euros - a massive increase compared to 11.3 billion euros in the previous year.

But what actually happens in bankruptcy? An analysis of the latest trends shows that the economic framework plays a central role. In the first quarter of 2025, bankruptcy applications increased by 13.1 percent compared to the previous year, which nourished the concern for further bankruptcies. At the same time there are first signs of a possible trend reversal. Steffen Müller, a respected member of the IWH, indicates that the early indicators were among the values ​​of the previous year between December 2024 and February 2025 for the first time since the end of 2021. According to Müller, the years of increasing number of insolvency numbers could now be ended, although it is more likely that the numbers stagnate because the economic situation has not changed drastically. These nuances in bankruptcy events feed the hope that not all companies have to lie on the ground and some may have a good hand and could create the turn. [IWH] (https://www.iwh-halle.de/en/press-releases/detail/iwh-insolvenztrend-zent-der--nochmens-nochmens-angeste-aber-erste-fuer trend turn) impressively highlights these aspects.

The development of bankruptcies

A look at the numbers urgently shows how the situation has developed in recent years. In 2023, Germany recorded a total of around 110,200 bankruptcies, with the company insolvencies alone at 17,814 - a clear increase compared to the previous year. The distribution of bankruptcies is particularly striking: the list leads the list, followed by Bavaria and Baden-Württemberg. The high financial damage caused by bankruptcies last year are particularly frightening; It was estimated that they added up to 56 billion euros - an increase of almost 80 percent compared to the previous year. Statista brings these numbers to the point.

We should pay particular attention to the most common reasons for bankruptcies. Companies have put pressure on the economic location as well as insolvents in the course of the pandemic and the low interest rate phase. 59 percent of bankruptcies concerned the service sector. A remarkable example of bankruptcy is Galeria Karstadt Kaufhof GmbH, which made an application for bankruptcy for the third time in 2024. Thanks to a new investor, many department stores were preserved, which could ensure 12,000 jobs.