April witnessed a substantial uptick in corporate bankruptcy filings. - Enterprise Failures in April: Count Rises Significantly
In a recent report, the statistical office in Wiesbaden, Germany, revealed preliminary figures indicating a less significant increase in company insolvencies of 2.4 percent compared to June 2024. However, this modest decrease does little to alleviate concerns about the ongoing rise in insolvencies, with the number of economically significant company insolvencies having increased notably in April 2025 compared to April 2024[1][4].
Volker Treier, President of the Chamber of Industry and Commerce (DIHK) in Germany, stated that the wave of company insolvencies continues to rise[2]. The figures for June are a leading indicator, as the applications for regular insolvency are only included in the statistics after a decision by the competent court. The actual time of the insolvency application is often approximately three months earlier.
High labor and energy costs, a paralyzing bureaucracy, and significant uncertainties in international business were cited as reasons for the rise in insolvencies by DIHK President Treier[2]. In April 2025, the construction and hospitality sectors also had high insolvency rates[1]. The rise in insolvencies observed in April 2025 was not continued in the preliminary figures for June 2025.
Germany has been navigating a difficult economic environment, characterized by two years of recession and only a fragile GDP growth of 0.2% in early 2025[1]. This stagnation has severely strained businesses, especially medium and large companies[1]. The rise in insolvencies is attributed to economically significant companies filing for insolvency in April 2025, according to the statistical office[1].
Some companies are weakened after years of lackluster economic growth and ongoing crises. The industrial sector, heavily reliant on exports, is suffering from slumping global demand. Export sales have declined due to tariff uncertainties, particularly with the U.S. market, where exports fell 7.7% from April to May 2025 and 13.8% compared to May 2024[1][5].
The construction sector is especially affected by payment delays, with 24% of companies reporting long overdue payments, which heightens business risks in that industry[2]. The sector of transport and warehousing also saw a rise in insolvencies in April 2025, with 11.4 insolvencies per 10,000 companies reported by the statistical office[1].
The insolvency surge affects approximately 141,000 employees in the first half of 2025, up from 133,000 in the same period of 2024, indicating a tangible socio-economic impact due to rising bankruptcies[1][5]. Despite the current challenges, there is cautious optimism for 2026. Economic stimulus measures planned for defense, infrastructure, climate transition, and tax incentives may improve the business climate. However, the immediate outlook remains difficult, with persistent insolvency risks and weak domestic demand continuing to pressure various sectors of the economy[2].
- The prolonged surge in insolvencies, as reported by Volker Treier, President of the Chamber of Industry and Commerce (DIHK) in Germany, is causing significant concern within the community of businesses, particularly medium and large companies, as they navigate the difficult economic environment.
- The continuing rise in insolvencies, accompanied by high labor and energy costs, a paralyzing bureaucracy, and significant uncertainties in international business, has led to an increased socio-economic impact on the community, with approximately 141,000 employees affected in the first half of 2025.
