April Company Insolvencies in Germany Climbs Slightly
Corporate insolvencies experienced a minor uptick of 3.3% in April's statistics. - Rise in Bankruptcy Filings in April Moderates Slightly, Climbing by 3.3 Percent
Get the scoop on the latest business closures in Germany as we delve into the rise in insolvencies for April 2025.
You might find it intriguing to know that the local courts recorded 2068 regular insolvencies in February, marking a sharp 15.9% increase compared to the same month in the previous year, according to the official statistics. The claims of creditors reached around nine billion euros, substantially higher compared to the four billion euros in February 2024.
The German Chamber of Industry and Commerce (DIHK) Chief Analyst, Volker Treier, explains that sluggish demand both domestically and abroad, coupled with uncertainties, particularly due to US trade policy, and high domestic burdens such as taxes, energy costs, and bureaucracy, have been eroding company profitability.
The Leibniz Institute for Economic Research Halle (IWH) spoke up with their findings on April insolvencies, reporting 1626 company insolvencies - a notable 11% increase compared to March, and 21% when compared to April 2024. This figure is even higher than during the financial crisis of 2008 and 2009. The last time Germany recorded more insolvencies was back in July 2005.
One factor contributing to the high insolvency count is the high proportion of smaller insolvency cases. IWH expert Steffen Müller predicts that this trend will persist in the upcoming months, despite the higher overall insolvency count. Nevertheless, Müller anticipates a continued increase in company insolvencies in Germany in the foreseeable future compared to last year.
Treier from DIHK has called on the new federal government to act swiftly and decisively with bureaucracy reduction, tax relief, and electricity price reduction to counter the growing trend of business closures. Treier suggests that these measures could potentially reverse the increasing insolvency trend.
In a separate report, there was a 4.8% increase in consumer insolvencies in February, with 6075 cases.
- Company Insolvency
- Local Courts
- February Insolvencies
- German Chamber of Industry and Commerce (DIHK)
- Volker Treier, DIHK Chief Analyst
- Wiesbaden, Germany
- Increasing Insolvencies Across Germany and Western Europe - Sectors such as construction, courier services, and gastronomy in Germany have been hit particularly hard by rising costs, staff shortages, and shrinking margins. Across Western Europe, corporate bankruptcies reached their highest level since 2013 with a total of 190,449 cases in 2024, representing a 12.2% increase from the previous year. [citation needed]
- The February 2025 local court records indicate a significant 15.9% increase in regular company insolvencies compared to the same month in the previous year, totaling 2068.
- The German Chamber of Industry and Commerce (DIHK) attributes the surge in company insolvencies to factors like sluggish demand worldwide, uncertainties in US trade policy, and high domestic burdens such as taxes, energy costs, and bureaucracy.
- The Leibniz Institute for Economic Research Halle (IWH) reported 1626 company insolvencies in April 2025, marking a 21% increase compared to April 2024 and even exceeding the insolvency numbers during the financial crisis of 2008 and 2009.
- Experts from IWH expect the trend of smaller insolvency cases to continue, despite the overall increase in insolvencies, predicting a further increase in company insolvencies across Germany compared to the previous year.