Up to 24,000 bankruptcies threaten companies and hospitals in Germany
Germany is facing an unprecedented wave of corporate bankruptcies in 2026, with up to 24,000 companies expected to fail. High energy costs, heavy bureaucracy, and global competition are pushing the economy to its limits, and there seems to be no urgent solution in sight.
The Halle Institute for Economic Research (IWH) report indicates 17,604 bankruptcies in 2025 alone, surpassing the figures from the global financial crisis of 2009. December 2025 was particularly bleak, with bankruptcies rising by 15.7% compared to the previous year. Creditreform estimates the total bad debts at 57 billion euros.
Investors are increasingly avoiding Germany, leaving struggling companies without the necessary support. The consulting firm Falkensteg indicates that many international investors are refusing to invest in Germany due to high burdens and costs. Without a significant economic breakthrough, this trend is likely to continue.
Well-known brands have already disappeared, including the shoe store Görtz, the fashion company Gerry Weber, and the men's clothing store Wormland. The retail giant Depot has barely survived, while Galeria (Kaufhof) faces repeated restructuring. Medium-sized companies in the chemical and automotive sectors are operating at less than 70% capacity amid intense global competition.
The healthcare sector is also at risk. About four-fifths of German hospitals are operating at a loss, with notable closures such as Argentum in Bad Homburg and Schlosspark Clinic in Berlin-Charlottenburg. These closures threaten access to care, forcing taxpayers to cover rising costs through increased health insurance premiums and government support.
The impact of this wave of bankruptcies is widespread, affecting employment, consumer spending, and local tax revenues. Restaurants and recreational activities, as well as the quality of life in general, are also affected, with no clear solution in sight for the German economic crisis.