The number of company bankruptcies rose by more than 20 percent compared to the previous year. The construction industry and trade were particularly affected.
The number of company bankruptcies in Germany also increased in February. The German district courts reported 1,362 corporate insolvencies – that’s 20.3 percent more than in the same month last year, as reported by the Federal Statistical Office. According to the Wiesbaden authorities, the number of company bankruptcies has been increasing continuously since August 2022.
The district courts estimated the probable claims of the creditors at almost 3.2 billion euros. Most business insolvencies in February were in construction with 237 cases and in trade including maintenance and repair of motor vehicles with 234 cases.
In April there were signs of an easing. According to preliminary information from the statisticians, 14.1 percent fewer standard insolvencies were applied for than in March. In February (plus 10.8 percent) and in March (plus 13.2 percent) they had increased compared to the respective previous month. The authority emphasized that the insolvency applications only flow into the statistics with a delay of several months.
In recent years, state aid and the partially suspended obligation to file for insolvency have caused company bankruptcies at a low level, despite the corona and energy crisis. The professional association of insolvency administrators and trustees in Germany recently assumed that the increase in company bankruptcies in a long-term comparison only points to a normalization of insolvency events.
Source: Stern
