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- October 13, 202618°
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- October 13, 202618°
Around 188,000 German companies ceased operations in 2025
Around 188,000 companies in Germany ceased operations in 2025, a 10% increase from the previous year and the highest level in nearly 20 years. In April 2026, 2,276 companies filed for insolvency with local courts, up 7.1% year on year.
Around 188,000 companies in Germany ceased operations in 2025. The figure, which rose 10% from the previous year, marked the highest level in nearly 20 years.
The wave of insolvencies remained high in 2026. Local courts recorded 2,276 corporate insolvency filings in April 2026. This was a 7.1% increase from the same month last year. In the first quarter of the year, filings rose 6.5% year on year.
Voluntary closures make up the majority
Rising costs, competitive pressure and a shortage of skilled labor contributed to companies' withdrawal from the market. Some companies with good or moderate credit ratings also struggled to continue operating.
Creditreform spokesperson Patrick-Ludwig Hantzsch said the crisis had spread across the entire economy. While the insolvencies of large companies received greater public attention, numerous small and medium-sized enterprises quietly withdrew from the market.
Only 13% of the companies that ceased operations in 2025 filed for insolvency. Most closures took place voluntarily.
Closures increased in traditional sectors
The manufacturing, construction and hospitality sectors were particularly affected by company losses. Some 11,000 companies in manufacturing, 24,000 in construction and 15,000 in hospitality ceased operations.
These closures represented increases of 10%, 12% and 15%, respectively, compared with the previous year.
There is no single cause
Insolvency expert Hans Joachim-Berner said economic conditions had evolved into a broad-based crisis. Berner said high energy prices, inflation limiting consumer spending and changes in interest rates had put pressure on companies.
Berner said the current situation was not caused by a single factor, adding that the COVID-19 pandemic, supply chain problems, the post-pandemic recovery, the war in Ukraine, the energy crisis, issues involving Iran and customs problems had accumulated pressure on companies' financial resources.
Berner also said artificial intelligence was causing rapid and fundamental changes in business models, noting that companies faced significant pressure to transform.
Business community complains of high costs
Business circles in Germany cited high taxes, labor costs and the bureaucratic burden among the main causes of the wave of closures.
Karsten Schmidt, a concert organizer in Berlin, said high taxes were putting pressure on his small business and that he was considering moving to another European country with lower taxes and labor costs. Schmidt said a more favorable environment for businesses needed to be created in Germany.
Insolvencies also tightened credit conditions
The increase in corporate insolvencies also affected the supply of credit. In response to rising risks, banks began demanding more collateral, tightening lending conditions and examining applications more extensively.
For companies struggling with a lack of orders and structural transformation, this made it more difficult to access the investment needed to renew their business models. Automotive suppliers and energy companies were among the sectors particularly affected by changes in credit conditions.
Although banking circles did not explicitly use the term crisis, the increase in risk across the system was reflected in credit conditions. The room for maneuver of small and medium-sized enterprises, which rely more heavily on bank loans, narrowed.
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