Insolvencies in Germany continue to rise, reaching a ten-year high of 11,900 corporate insolvencies. However, the trend is significantly less dynamic than last year. Despite all the economic policy hopes and slightly optimistic signals from the business world, the economy remains mired in recession. In particular, there is a risk of a loss of expertise and know-how.
Bankruptcies reach ten-year high
Despite some positive signs, the German economy remains mired in recession – with serious consequences: The number of corporate insolvencies rose to its highest level in ten years in the first half of 2025. According to Creditreform Wirtschaftsforschung, 11,900 corporate insolvencies were registered. This represents an increase of 9.4 percent compared to the same period last year (first half of 2024: 10,880 cases). A strong increase of 28.5 percent was already recorded last year.
"Despite some signs of hope, Germany remains mired in a profound economic and structural crisis. Companies are struggling with weak demand, rising costs, and persistent uncertainty. Financial reserves, in particular, are dwindling, some loans are no longer being extended, and more and more companies are experiencing serious difficulties," explains Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research. Since no significant economic recovery is expected for the remainder of the year, the risk of insolvency currently remains high. "The number of bankruptcies will continue to rise until the end of the year," Hantzsch predicts.
Upward trend also in consumer insolvencies
What is striking is that the negative trend also continues among private individuals: In the first half of 2025, around 37,700 consumer insolvencies were reported – an increase of 6.6 percent compared to the previous year (35,380 cases).
"The persistently high level of insolvencies is increasingly triggering chain reactions. For three years, the number of private individuals filing for bankruptcy has been rising continuously. The sharp rise in the cost of living and job losses, particularly in industry, are putting massive pressure on many households," Hantzsch continued.
Creditors face billions in losses
The economic consequences of the insolvencies are significant: Estimated bad debt losses from corporate insolvencies amounted to approximately €33.4 billion in the first half of 2025. This results in an average loss of approximately €2.8 million per insolvency case – significantly more than in 2022 and 2023.
The number of affected jobs has also increased: Around 141,000 employees worked in the affected companies – an increase of 6.0 percent compared to the previous year (133,000). Large-scale insolvencies are driving this number up. Among the most recent high-profile cases are the nursing home operator Argentum Pflege and the household goods chain KODi Diskontläden GmbH – both with over 2,000 employees each.
Bankruptcies in medium-sized businesses are rising significantly
Creditreform's current insolvency study shows that insolvency activity in the medium-sized enterprise segment continues to be dynamic. The number of insolvencies in the size category of 51 to 250 employees rose by an above-average 16.7 percent. Insolvencies also increased among larger companies with revenues of €5 million or more, and are now more than twice as high as before the coronavirus crisis.
"This development is also due to the modern possibilities of German insolvency law, which is strongly geared towards the restructuring of distressed companies. Larger companies, in particular, are increasingly using these options to reposition themselves in the wake of insolvency," explains Creditreform spokesperson Patrik-Ludwig Hantzsch.
Manufacturing industry suffers from economic crisis
The manufacturing sector has been particularly hard hit by weak industrial production. Insolvencies here rose significantly by 17.5 percent. Retail also saw an above-average increase of 13.8 percent – this was due to consumer restraint and intense competition in online retail. In the construction sector, the increase was comparatively small at 1.7 percent. The majority of insolvencies continue to be in the service sector: With almost 7,000 cases, this sector accounts for approximately 58.5 percent of all corporate insolvencies.
The share of young companies (up to four years old) in insolvencies continued to decline, reaching 21.3 percent, the lowest level since 2021. This is primarily due to the declining number of company start-ups in Germany. Older, established companies with more than ten years of operation continue to be the most affected, accounting for almost 42 percent.
Supplier industry under pressure
One focus of the study is the current situation of automotive suppliers. The industry is currently struggling with weak demand, rising energy and raw material costs, and limited access to financing. Medium-sized suppliers in particular are coming under increasing pressure, but larger companies are also affected. The number of bankruptcies has risen accordingly: Since 2020, Creditreform has recorded 155 insolvencies in this segment nationwide – 19 of them in the current year 2025 alone. An estimated 43,000 employees have been directly affected in the past five and a half years.
"The future competitiveness of automotive suppliers depends significantly on how successfully the transformation process toward electromobility and digitalization is managed. Currently, the industry is strongly characterized by uncertainty, consolidation, and considerable pressure to adapt," said Hantzsch.
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