The number of insolvencies for both corporate and individual businesses in Germany reached a level in April that was higher than the record set in March, according to the Leibniz Institute for Economic Research Halle (IWH). The institute also warned that a “loosening of the situation is not in sight” for the coming months.
According to the IWH, the total number of insolvencies recorded in April stood at 1,776. This represents a 3 percent increase compared to March and is 10 percent higher than the figure from April 2025. When compared to an average April spanning the pre-pandemic years of 2016 through 2019, the current total is a staggering 82 percent higher.
This figure marked the highest number of insolvents since June 2005, when 1,859 insolvencies had been reported. Steffen Müller, who leads IWH’s insolvency research, expects the trend to continue, predicting that very high insolvency numbers are likely through July.
Specific sectors saw new record highs in April, particularly in accommodation and gastronomy, as well as in real estate and housing. While trade and services narrowly missed marking new peaks, regional data highlighted records in Berlin and Bavaria. According to the IWH, the increase in Berlin was notably attributed to an unusually high number of hotel insolvencies.
The impact on the job market was severe, with the largest 10 percent of struggling companies affecting nearly 20,000 jobs. This figure represents an increase of 43 percent compared to March and 39 percent compared to the previous year’s month. Furthermore, it is more than double-a 112 percent increase-the average figure recorded in April during the pre-COVID years of 2016 through 2019. However, the IWH noted that this high job loss tally was largely due to two major insolvencies in the trade sector, which alone affected almost 6,000 jobs.