Germany is witnessing a significant surge in bankruptcies, marking the highest level in a decade. Saxony alone has reported a 22% increase, heavily impacting small and medium-sized enterprises across various sectors, including retail, automotive supply, and construction. Notable companies like Tupperware and Esprit have succumbed to financial pressures, joining the list of those filing for insolvency.
Consumer bankruptcies are also climbing, with the Ifo Institute predicting further rises. The prolonged suspension of the insolvency filing obligation has drawn criticism for delaying necessary restructuring. Poor payment behavior and a liquidity crisis have exacerbated the situation.
Despite the bleak outlook, insolvency administrator Lucas Flöther anticipates continued increases but dismisses fears of a bankruptcy 'tsunami.' The hospitality industry, already struggling with economic weaknesses and cost explosions, is particularly vulnerable. Start-ups face challenges, though cities like Leipzig and Dresden show relative stability.
In 2024, experts expect around 20,000 firm bankruptcies, reflecting a worrying trend reminiscent of the 2009 financial crisis. The numbers underscore the urgent need for companies to adapt and manage their financial health proactively.
