German Corporate Failures Surge 15 Percent

(MENAFN) German business failures have escalated dramatically, with corporate insolvencies jumping 15.2% year-over-year this December, Destatis (the Federal Statistical Office) reported in preliminary findings released Monday.

Finalized October statistics reveal that business bankruptcies climbed 4.8% annually, reaching 2,108 cases during that month alone.

Transportation and warehousing companies faced the steepest collapse rate in October, recording 12.73 failures per 10,000 firms. The hospitality industry followed closely behind with 10.5 insolvencies per 10,000 businesses.

Outstanding creditor obligations tied to corporate bankruptcy proceedings totaled €2.6 billion ($3.04 billion)—a decrease from the roughly €3.8 billion recorded in October 2024, Destatis confirmed.

Individual bankruptcy filings also climbed sharply, with 6,709 debtors declaring insolvency in October—representing a 7.6% surge compared to the prior year's corresponding period.

Two-Decade Peak in Business Collapses
The Halle Institute for Economic Research (IWH) disclosed on Jan. 8 that Germany's corporate bankruptcy tally reached its most severe point since 2005 throughout last year.

Institute data shows 17,605 enterprises collapsed in 2025, jeopardizing approximately 170,000 positions across the nation. The IWH emphasized that bankruptcy figures during the 2009 global financial crisis remained about 5% lower than current levels.

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