New rise in bankruptcy cases, predictions of 22,000 companies going bankrupt in 2025
Germany is witnessing a sharp new increase in corporate bankruptcies, reaching its highest levels in over a decade. According to data from the Federal Statistical Office, regular bankruptcies rose by 10.4% in September compared to the same month last year. Although these figures are still preliminary, they reflect a continuing upward trend that is expected to worsen in the coming months.
In July alone, local courts recorded 2,197 cases of corporate bankruptcy, an increase of 13.4% compared to last year, the highest number recorded in July in twelve years. The German Chamber of Commerce and Industry (DIHK) warned that this is just the beginning of a deeper economic crisis. Chief economist Volker Treier stated that weak exports, especially to the United States, declining industrial production, and stagnation in the domestic economy are all factors undermining Germany's competitiveness. He predicted that more than 22,000 companies will close their doors permanently by 2025 due to bankruptcy.
The chamber urged the government to take urgent structural measures, emphasizing the need to reduce energy and labor costs, and to lessen the heavy tax and administrative burdens facing companies. However, the Association of Insolvency Administrators in Germany (VID) confirmed that bureaucracy is not the main reason for insolvencies. The association's president, Christoph Niering, explained that administrative burdens do not cause crises on their own, but act as accelerators when there are pre-existing problems such as liquidity shortages, rigid business models, supply chain disruptions, or wrong strategic decisions.
In July, creditor claims related to these bankruptcies amounted to approximately 3.7 billion euros, compared to 3.2 billion euros the previous year. The transportation and storage sectors were the most affected, recording 12.7 bankruptcies per 10,000 companies, followed by the hospitality sector and other services such as temporary employment agencies, with 9.9 bankruptcies per 10,000 companies. The statistical office clarified that these figures only include officially registered bankruptcies and do not account for company closures that occurred for other reasons.
Personal bankruptcy cases have risen sharply, with 7,553 cases recorded in July, an increase of 12.9% compared to last year. The IWH Institute in Halle reported that the number of bankruptcies between July and September approached the record figures recorded in the second quarter, making it the second highest rate in 20 years. Institute expert Stephen Müller noted that the increase has temporarily stabilized, but bankruptcy numbers are expected to remain high in the coming months.