Corporate Bankruptcies in Germany Reach 13-Year High in July
Corporate bankruptcies in Germany rose by 8 percent year-on-year in July to 2,373, hitting the highest level since 2013.
According to data from the Federal Statistical Office of Germany, corporate bankruptcies in the country increased in July, reaching the highest level recorded in a single month since July 2013. The number of bankruptcies continued to rise in the first seven months of the year.
Record Increase in July
According to official data released by Destatis, the Federal Statistical Office of Germany, 2,373 businesses filed for bankruptcy in the country in July. This figure revealed an 8 percent increase in corporate bankruptcies compared to the same period in 2025.
The data in question was recorded as the highest level seen in a single month since July 2013, when 2,459 bankruptcies were registered.
Seven-Month Period Data
In the January-July period of the year, the total number of corporate bankruptcies increased by 6.9 percent compared to the same period of last year, rising to 15,185.
Meanwhile, the estimated amount of debt owed to creditors due to corporate bankruptcy filings was recorded at 21.9 billion euros during this period.
Change in Debt Amount
In the same period of last year, when larger-scale firms went bankrupt, the debt projected to be paid to creditors was approximately 31.8 billion euros.
The primary reason for this decrease in the debt amount was that the companies going bankrupt this year were of a smaller average scale.
Sectoral Distribution and Rates
During the January-July period in the country, an average of 42.8 out of every 10,000 companies officially filed for bankruptcy.
On a sectoral basis, the highest number of bankruptcies occurred in the transportation and storage sector with 85.5 cases per 10,000, followed by accommodation and construction.
Personal Bankruptcies and Causes
In the January-July period, 46,043 debtors filed for personal bankruptcy, showing a 1 percent increase in applications in this area.
Experts point to the long-stagnant domestic economic climate, along with energy and labor costs, as the main drivers behind the wave of bankruptcies.
Trends Ahead of September
According to analyses by the Halle Institute for Economic Research (IWH), the increase in corporate bankruptcies continued in September, with the number of bankruptcies rising for both sole proprietorships and corporations.
IWH officials stated that after peaking in the second quarter, bankruptcy activity remained high, but they expect a decline in the fourth quarter.