Emmanuel Thomas I DPA, Friday, July 14, 2023
BERLIN – The number of firms going bankrupt in Germany rose again last month, according to preliminary data released by Germany’s Federal Statistical Office on Thursday.
In June, 13.9% more companies filed for bankruptcy than in the same month in 2022. In May, business bankruptcies were up 3.1%.
The number of corporate bankruptcies in Germany has increased year-over-year in every month since August 2022, according to the Statistical Office.
Government aid to businesses and the partial temporary suspension of certain requirements to file for bankruptcy in Germany had caused company bankruptcies to remain at a low level in recent years, despite the coronavirus and energy crises.
Bankruptcy data tends to lag behind actual bankruptcy filings by about three months because individual cases are only counted after an initial decision is reached in bankruptcy court.
Final figures for April were also released on Thursday which showed that German district courts reported 1,428 corporate insolvencies nationwide, a 14.4% increase over the year earlier.
The courts estimated the expected claims of the creditors at around €1.3 billion ($1.5 billion). In April 2022, it was nearly €1.4 billion.
An uptick in bankruptcies in June is not unusual, according to the professional association for bankruptcy administrators in Germany (VID).
“At the end of a quarter, there are deadlines for declarations and payments to public creditors such as the tax authorities or social security agencies,” VID chairman Christoph Niering told dpa.
“If these payments cannot be made, then bankruptcy filings will increase.”
