German corporate bankruptcies to surge to a decade high in 2025

BERLIN, Dec 08 (Reuters): German corporate insolvencies are projected to hit their highest level in more than a decade this year, a new study revealed on Monday, as the nation grapples with a stubborn economic downturn.
Approximately 23,900 companies are expected to file for bankruptcy in 2025, an 8.3 per cent increase from 2024 and the highest figure since 2014, according to a report by credit agency Creditreform.
While that growth would be slower than in previous years, the rising numbers underscore deep-seated challenges facing German businesses following two years of economic contraction.
Many businesses are heavily indebted, struggle to obtain new loans, and are battling structural burdens such as energy prices or regulation, said Patrik-Ludwig Hantzsch, head of economic research at Creditreform.
"This puts small and medium-sized businesses, in particular, under immense pressure and is crippling many operations," Hantzsch said.
This year's increase in insolvencies has been driven by a rise in cases among smaller companies, with micro-enterprises, of up to ten employees, accounting for the largest share - 81.6 per cent this year, marginally higher than in 2024.
While individually these have a lower impact on financial damages and employment, the financial toll on creditors, including suppliers and banks, remains substantial.