The number of corporate insolvencies has risen sharply

The number of corporate insolvencies has risen sharply

Because of the economic downturn and rising credit costs, more and more companies in Germany are on the verge of collapse. In July, almost a quarter (23.8 percent) more companies applied for standard insolvency proceedings than in the same month last year, according to the Federal Statistical Office in Wiesbaden. There had already been an increase of almost 14 percent in June.

When looking at the results, it should be borne in mind that the proceedings are only included in the statistics after the insolvency court has made its first decision, the office explained. In many cases, the actual time of filing for insolvency is almost three months earlier.

energy supplier hardly affected thanks to state aid

The number of corporate insolvencies has been increasing continuously since August 2022. The final figures for May are now available: In that month, the German district courts reported 1,478 corporate insolvencies, 19 percent more than in the same month last year. The local courts put the claims of the creditors at almost four billion euros. In May 2022 it was almost 2.2 billion euros.

Most insolvencies per 10,000 companies were in the transport and warehousing sector with 8.7 cases, followed by other economic services, such as temporary employment agencies, with 7.4 cases. There were fewer insolvencies in the energy supply sector.

In recent years, state aid and the partially suspended obligation to file for insolvency have kept the number of company bankruptcies at a low level – despite the corona and energy crises. Experts had therefore expected an increase in the current year.

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