A slight decrease in corporate and partnership insolvencies was recorded in Germany during June, according to data released Tuesday by the Leibniz Institute for Economic Research Halle (IWH). However, the second quarter of 2025 still saw records surpassed from the previous quarter, marking the highest insolvency figures observed since 2005.
The IWH Insolvency Trend indicates 1,420 corporate and partnership insolvencies were registered in June. This represents a four percent reduction from the previous month, but a significant 23 percent increase compared to June 2024. The figure also sits 50 percent higher than the average for Junes between 2016 and 2019, prior to the COVID-19 pandemic.
Approximately 16,000 jobs were affected within the ten percent of companies with the largest workforce experiencing insolvency in June. While this figure remains consistent with previous months, it reflects a substantial 68 percent increase compared to June 2024 and is 43 percent above the pre-pandemic June average (2016-2019).
During the second quarter of 2025, a total of 4,524 personal and capital partnerships faced insolvency proceedings. This surpasses the record set in the first quarter of 2025 by seven percent. The number of insolvencies represents the highest recorded since the third quarter of 2005 – even exceeding figures seen in the aftermath of the major economic and financial crisis of 2009. While the number of affected employees within the ten percent of companies with the largest workforce experiencing insolvency slightly decreased to approximately 45,000 compared to the previous quarter, it remains at a persistently high level.