Large companies in Germany are increasingly affected by insolvencies. In the past year, 364 companies with a turnover of more than ten million euros had to file for insolvency.
This is an increase of 30 percent compared to the previous year, as an analysis by the restructuring consultancy Falkensteg for the Handelsblatt (Tuesday edition) shows. This is significantly more than in the first year of the corona pandemic in 2020, when 292 large companies went bankrupt.
The automotive sector was particularly affected: in 2024, almost one in six large insolvencies in Germany was an automotive supplier. Falkensteg recorded a significant increase in the construction sector, with 40 large insolvencies, a plus of 186 percent compared to the previous year.
According to a report by the credit agency Creditreform in December of the previous year, a total of 22,400 insolvencies were recorded, the highest value since 2015 and almost 25 percent more than in 2023.
Industry experts fear a further increase in insolvency numbers in the new year. They expect more bankruptcies among auto suppliers, machinery manufacturers, in the construction industry, and even in the healthcare sector.
Companies in financial distress are also finding it increasingly difficult to recover through the insolvency process. Of the large companies that became insolvent in 2023, only 46 percent could be rescued by the end of 2024, either through a sale to an investor or because the creditors agreed to an insolvency plan. Three years earlier, this was still the case in 62 percent of cases.