Insolvency trends in Germany and the financial damage

While there were 21,812 corporate insolvencies last year, approximately 24,000 insolvencies are expected for 2025. These are figures last seen in Germany in 2014. In the first half of 2025, 11,900 corporate insolvencies were already recorded. In addition to these figures, the financial damage is of particular significance. This has risen significantly compared to the early 2010s. Last year, it amounted to 56 billion euros. Since 2000, the only higher loss amount was recorded during the financial crisis of 2009, at 78.9 billion euros. No improvement is expected for 2025 either. The reason for the high damage amounts is not only the increase in insolvency figures, but also the high number of large claims. This is not only a trend in Germany, but can be observed worldwide.

In Germany, there were 87 major insolvencies in 2024 with a cumulative turnover of €17.4 billion, and according to Allianz Trade, another 16 large companies are expected to file for insolvency in 2025. These major insolvencies regularly have a knock-on effect on smaller suppliers, who then also find themselves in financial difficulties. This then has knock-on effects in the value chains.

In the first quarter of 2025 alone, three large clinics, three textile retail companies, two automotive suppliers and chemical companies filed for insolvency, causing losses of approximately €2.2 billion for suppliers.

In addition, studies have found that fewer and fewer of the companies filing for insolvency can be saved through self-restructuring, insolvency plans with debt cuts, capital injections or takeovers. Of the large companies that filed for insolvency in 2024, only a third were saved in the first half of 2025.

The number of job losses is also rising. While 133,000 jobs were lost in 2024, an increase to 141,000 jobs is expected this year.

Industries in focus: automotive suppliers, construction and retail particularly affected

Looking at individual sectors, automotive suppliers are worth mentioning, where solutions are only being found for a small proportion of insolvency filings. The slump in sales by manufacturers, customs duties and e-mobility are having an impact here. The business model of many suppliers in the combustion engine sector is no longer viable. The 34 insolvencies in 2024 will be followed by a further 26 in the first half of 2025. And this is certainly not the end of the story. In addition, the automotive trade is also suffering from sluggish sales. Price comparisons via online platforms are pushing down prices and forcing individual dealers into insolvency.

Plastics manufacturers and mechanical engineering companies are also continuing to file for insolvency at a higher rate than last year due to subdued demand, weak sales in China and general investment weakness triggered by geopolitical tensions and American tariff policy. Further increases are expected here. However, mechanical engineering in particular often offers interesting technologies or employee know-how, which makes it attractive for buyers to continue the business.

The situation in the construction industry is somewhat different. While project developers and building construction companies were the focus in 2024, mainly due to interest rate developments and high construction costs, companies involved in finishing work will follow in 2025, as these businesses only feel the consequences after a time lag. Due to uncertainties in the solar expansion sector, there will also be new insolvencies in this area.

In the retail sector, with a focus on fashion, further companies are also likely to exit the market. Here, too, the question is how established brick-and-mortar companies can retain and win over their target groups with revised business models in the face of online offerings that are attractive to younger generations. If they fail to do so, it will be difficult to remain successful in the market in the long term.

Finally, hospitals and care companies must continue to be assessed to determine whether they can operate efficiently due to economies of scale, or whether unused capacity is causing problems. Further consolidation and the exit of market participants are also likely to continue in this area.

In this respect, it is important to examine closely how viable the business models of individual companies in such industries are in order to be able to generate sales as a supplier. It is also important to work proactively in order to recognise in good time that customers could encounter difficulties, which could then also affect one's own capacities.