In Germany, bankruptcies reach highest level in a decade

Admin I Friday, August 09, 2024

 

BERLIN – The number of German company bankruptcies rose to its highest level for around 10 years, the Halle Institute for Economic Research (IWH) reported on Thursday.

Insolvencies rose by a third to 1,406 in July, according to the IWH, and almost 10,000 jobs were affected in the largest 10% of these companies.

The significant increase in insolvency figures affected all sectors, but was particularly strong in manufacturing, where 145 filed for insolvency in July following 100 that did so in June.

The head of insolvency research for the IWH, Steffen Müller, said he expected the figures to fall slightly in August and then rise again in September.

This means that the number of bankruptcies is likely to remain consistently above the pre-pandemic level.

The institute analyses the latest insolvency announcements from the German registry courts and links them to the balance sheet figures of affected companies.