A sharp rise in German corporate bankruptcies amid economic recession

The number of German companies filing for bankruptcy rose sharply in February amid the ongoing economic recession.

The Federal Statistical Office in Wiesbaden announced on Friday that it recorded a 12.1% increase in bankruptcy filings in February compared to the previous year.

With the exception of June 2024, bankruptcy growth has been in double digits since June 2023.

According to the office’s data, the figures only include bankruptcy cases in which the court has issued a preliminary ruling.

Companies usually file an initial bankruptcy petition about three months before the court’s decision.

Local courts recorded 21,812 corporate bankruptcy filings for the entire year 2024, a 22.4% increase compared to 2023, which also saw a 22.1% increase.

Germany has not seen such a high number of bankruptcies since 2015, when it recorded 23,101 cases.

In 2024, creditor claims more than doubled, reaching €58.1 billion, compared to €26.6 billion in 2023.

The office attributed this sharp increase to a rise in the number of major bankruptcies with claims exceeding €25 million, which rose by 127.5% to 314 cases.

Most bankruptcies were in the transportation, warehousing, construction, and other economic service sectors.

In contrast to corporate bankruptcies, the number of individual bankruptcies rose slightly by only 6.5%, to 71,207.