Number of company bankruptcies at a ten-year high

The number of corporate insolvencies in Germany rose by 8,3 percent to 23.900. This includes almost 20.000 micro-enterprises with fewer than ten employees, reports Creditreform.

"Many businesses are heavily indebted, have difficulty obtaining new loans, and are struggling with structural burdens such as energy prices or regulation. This puts massive pressure on small and medium-sized enterprises in particular and is breaking the neck of many businesses," he says. Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research at the presentation of the new insolvency statistics.

Photo: © Creditreform

According to Creditreform, the number of insolvent companies in Germany will reach [number] in 2025. highest level in more than ten years The target has been reached. 23.900 companies had to file for insolvency, 8,3 percent more than in the previous year. However, the increase was significantly lower than in the two preceding years (2023: plus 22,9 percent; 2024: plus 22,5 percent). Nevertheless, the trend has been upward since 2021.

When the discount retailer Kodi, the specialist retailer Hammer, or large hospital groups have to file for bankruptcy, it dominates media coverage. And then...micro-enterprises with up to ten employees accounts for the largest share of corporate insolvencies. 19.500 companies with fewer than ten employees They had to close in 2025. That's 81,6 percent of all bankruptcies.

Photo: © Creditreform

Of the large companies, defined as those with more than 250 employees, 140 had to file for insolvency – particularly those in the healthcare and nursing sectors. "Despite the difficulties, capacities in this sensitive area can mostly be maintained, so that care is largely guaranteed," Creditreform emphasizes.

Prominent examples cited include the German Red Cross (DRK) non-profit hospital company of Rhineland-Palatinate, based in Mainz, which ran into financial difficulties. More than 2.600 employees were affected. The insolvency proceedings for the Erzgebirge Clinic (Erzgebirgsklinikum gGmbH) have now been completed: "An insolvency plan secures the restructuring and continued existence of the company, ensuring that the hospitals it operates in Saxony will remain open. The company employs around 2.500 people," reports Creditreform.

According to Creditreform, the financial losses for creditors – such as suppliers and banks – remain high. The forecast for 2025 is... The total damage is estimated at around 57 billion euros. Estimated (almost at the same level as the previous year). This averages two million euros per insolvency case. Creditreform estimates that 285.000 employees have been or are currently affected by their employer's insolvency this year. 

Photo: © Creditreform

The affected industries had Manufacturing industry (plus 10,3 percent) and in retail (plus 10,4 percent) strong increases. The increase was less pronounced in Construction plus 4,7 percent). Also in Service sector Insolvencies rose only moderately this time (by 8,4 percent). In the construction sector, manufacturing, and the service sector, the number of cases is now around a third higher than in 2019.

76.300 personal bankruptcies: highest number since 2016

Job losses, rising rents and energy prices: Even at consumers The negative trend continued. The number of personal bankruptcies rose by a further 6,5 percent in 2025 to around 76.300 cases (previous year: 71.630) – the highest level since 2016. "The main reason for this is the increasing over-indebtedness of people," said Hantzsch. Nationwide, 5,67 million citizens are currently considered over-indebted. 

Outlook 2026

"The German economy is losing competitiveness. High costs, bureaucracy, and the ongoing economic weakness will further drive up the number of insolvencies," warns [name of expert/source]. Bernd Bütow, Chief Executive Officer of Creditreform.

The best credit rating is currently found in the "mining and quarrying" sector. At the bottom is the hospitality industry, whose credit rating plummeted during the coronavirus crisis. Although the situation has improved slightly since then, the creditworthiness of restaurateurs remains significantly limited.

The German government's planned multi-billion euro investments in infrastructure and defense could boost economic growth and curb the rise in bankruptcies in 2026. Nevertheless, additional structural measures are needed, such as relief from electricity costs, to stabilize the economic base and slow the increase.

Source: Creditreform Economic Research

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