Status: 11.08.2023, 19:24 p.m.
By: Lisa Mayerhofer
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More and more companies in Germany are going bankrupt – with consequences for thousands of employees. Experts speak of a "normalization" after the end of the pandemic.
Wiesbaden – The number of corporate insolvencies in Germany continues to rise sharply. In July, almost a quarter (23.8 percent) more companies applied for regular insolvency proceedings than in the same month last year, as the Federal Statistical Office announced on Friday, according to preliminary data in Wiesbaden. This continued the upward trend of recent months. Already in June, there was an increase of 13.9 percent. Many companies are struggling with the economic downturn, high costs for energy and materials, for example, and increased borrowing costs due to rising interest rates. Experts, however, do not see a wave of bankruptcies, but speak of "normalization".
Despite the increase, experts do not see a wave of insolvencies
"Despite a significant increase in corporate insolvencies in July, we do not see the much-mentioned wave of insolvencies," said Christoph Niering, chairman of the Professional Association of Insolvency Administrators and Trustees in Germany (VID). The insolvency situation had been significantly mitigated by the state during the pandemic, and now a normalization can be observed above all - starting from a low starting point, as the association emphasizes. "The figures are still below the values of the economically good year 2019."
A store makes a clearance sale. The number of corporate insolvencies in Germany continues to rise sharply. © Martin Schutt/dpa-Zentralbild/dpa/Symbolbild
The German government had partially suspended insolvency filing obligations during the Corona pandemic in order to prevent a wave of bankruptcies. This, as well as large-scale state aid, had kept the number of company bankruptcies at a low level in recent years – despite the pandemic and energy crisis. Since August 2022, the number of corporate insolvencies has been rising steadily again. Experts had expected an increase for the current year, partly because many companies are facing the repayment of Corona aid.
Most of the insolvencies occurred in the transport and warehousing sector
The Federal Statistical Office emphasized that the standard insolvency proceedings are only included in the statistics after the first decision of the insolvency court. Therefore, in many cases, the actual date of filing for insolvency is around three months earlier.
Final figures are available for May. In that month, German local courts reported 1478 business insolvencies filed, 19 percent more than in the same month last year. The local courts estimated the creditors' claims at just under 4 billion euros. According to the Federal Statistical Office, this was almost twice as much as in May 2022 with almost 2.2 billion euros. This May, there were also 5679 consumer insolvencies, 3.7 percent less than a year earlier.
The transport and storage sector accounted for the highest number of insolvencies per 10,000 companies with 8.7 cases, followed by other economic services, such as temporary employment agencies, with 7.4 cases. The fewest insolvencies occurred in the energy supply.
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Niering does not see the current July figures as an indicator of a long-term increase in insolvencies, but rather catch-up effects. Many of the companies now affected by insolvency were already in trouble before the pandemic. "Due to the large amount of state aid during the pandemic and the Ukraine war, the entry of these companies into insolvency was only delayed. Now we are seeing the market shakeout that comes with insolvency."
Reno, Hallhuber and Co.: Many well-known brands had to file for insolvency
On Thursday, the Halle Institute for Economic Research (IWH) had already determined high insolvency figures for July on the basis of its own surveys. In the course of the insolvencies reported in the month, around 9300 jobs were affected by the largest ten percent of companies alone, especially in industry and trade.
In recent months, bankruptcies of prominent names have increased, especially in the fashion and shoe trade. The industry is suffering from consumer reluctance to consume in the face of inflation. For example, the shoe store chain Reno had to file for insolvency, and insolvency proceedings in self-administration were opened for the fashion chain Hallhuber at the end of July. And in the spring, the fashion retailer Peek & Cloppenburg Düsseldorf sought rescue in protective shield proceedings.
"Closures of large employers lead to high and permanent wage losses for employees," warns the IWW. For the coming months, the institute is confident with regard to insolvency applications to the courts. The latest high figures marked the temporary end of the increase in insolvencies, believes Steffen Müller, head of IWH insolvency research. "For the months of August and September, we do not expect a significant increase in the number of insolvencies."
According to earlier data, the credit insurer Allianz Trade has expected a significant increase in corporate bankruptcies this year by 22 percent. In the wake of the bank turbulence in the spring, financial institutions have become more restrictive in lending. However, Allianz Trade did not see a wave of bankruptcies either. The number of cases is likely to remain five percent below pre-pandemic levels in 2019. (lma/dpa)