More and more companies in Germany are going bankrupt, according to the Polish business portal “Filary Biznesa” (Polish: “Pillars of Business”).
Due to the economic downturn and the rising cost of credit, more and more companies in Germany are going bankrupt. According to the Federal Statistical Office in Wiesbaden, 23.8 per cent more companies filed for bankruptcy in July 2023 than in the previous month. This is a continuation of an unfavourable trend: in June, bankruptcies rose by 13.9 per cent.
Christoph Niering, chairman of the Association of Insolvency Administrators and Restructuring Consultants, tried to reassure the German public by saying that “we are dealing with a correction process in the bankruptcy market”, but it didn’t come out well.
According to the Federal Statistical Office, the number of bankruptcies has been steadily increasing since August 2022. The agency notes that the lists include those bankruptcy proceedings that have already passed the first stage of court decision-making. In practice, this means that the applications for proceedings that are now included in the statistics should have been filed about three months earlier.
According to the final figures for May this year, 1,478 companies were declared bankrupt by German district courts, an increase of 19 per cent on the same period last year. Creditors’ claims totalled almost €4 billion, almost double the amount of €2.2 billion in May 2022. The personal bankruptcy rate in May was 5,679, down 3.7 per cent from the same period last year.
The majority of bankruptcies – 8.7 per 10,000 companies – related to the transport and storage sector. Next in line was the other services sector, including temporary employment agencies (7.4 bankruptcies per 10,000 companies).
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