Insolvency wave is rolling towards Germany: 24,400 companies in danger!

Insolvency wave is rolling towards Germany: 24,400 companies in danger!

Deutschland - The economic framework in Germany show worrying tendencies. For 2025, Allianz Trade predicts an increase in corporate insolvencies by 11 % to around 24,400 cases compared to the previous year. This negative trend image is reinforced by the existing economic crisis and ongoing customs -political conflicts. Previously, an increase of 10 % had assumed, but reality seems to be a lot darker. For 2026, another increase is expected by 3 % to around 25,050 bankruptcies. As early as 2024, the number of bankruptcies grew by alarming 22 %.

Germany is the most affected market in Western Europe. The high number of large insolvencies not only ensures company losses, but also has far -reaching negative consequences on suppliers and the entire supply chain. Milo Bogaerts, head of Allianz Trade in Germany, Austria and Switzerland, emphasizes the uncertainties that are currently burdening many sectors. In the first quarter of 2025, 16 large companies have already reported bankruptcy, including clinics and several retailers.

special problem areas

A look at the industries concerned reveals that the construction industry and retail are in particular suffering from bankruptcy. In the first half of 2024, 40 large insolvencies have already been registered. The affected companies include well -known chains such as the travel group FTI and the Galeria department store chain. The fashion retailer Esprit also announced the closure of all branches in Germany, which underlines the width of the problem.

The overall situation is further tightened by difficulties in repaying corona loans and restrictive lending. The strongly increased container freight rates and the retention of purchase of consumers additionally strain the sales. In May 2024, 1,934 corporate bankruptcies have been reached since June 2016, which indicates a continued weak economy.

expectations for the future

The forecasts are at a high level overall. Allianz Trade expects a moderate increase in bankruptcies to around 22,000 cases for 2025. In addition, a further tightening of the situation is forecast for 2026. A persistent economic crisis must continue to expect that the number of bankruptcies will be above the previous year's values. Last year there was also a record for large insolvencies: 87 cases with total sales of 17.4 billion euros, which corresponds to over a third compared to the previous year.

The current economic uncertainty and the challenges when dealing with existing debts after pandemic are presenting companies with immense challenges. The average interest rate for new corporate loans is 5.3 %, while the existing loans has risen to 3.5 %, the highest level since September 2012. These financial framework could also influence the bankruptcy figures in the coming months.

Overall, the economic situation in Germany remains tense, and other bankruptcies seem inevitable. Companies have to prepare for a difficult way because the market is still characterized by uncertainties. The developments in the coming months will be crucial to assess the extent to which the situation will relax or further tighten.

For a detailed analysis of the insolvency law situation, we refer to the reports of Tagesschau and DetailsOrtDeutschlandQuellen

• www.suedkurier.de
• www.tagesschau.de
• www.coface.de