Hamburg, February 27, 2020
Hamburg, February 27, 2020
The number of corporate insolvencies in Germany fell once again in 2019. In total, 19,005 companies filed for insolvency last year. This represents a 2.8 percent reduction in corporate insolvencies compared with the same period of the previous year (2018: 19,552 corporate insolvencies). As a result of what is now the tenth decrease in a row, corporate insolvencies in 2019 have fallen to a new low since 1994 (18,820 cases). Compared with 2003, the highest year for corporate insolvencies to date, when there were 39,320 corporate bankruptcies in Germany, the number of insolvencies in 2019 has more than halved. "Companies in Germany have benefitted from improved equity capitalization in combination with stable economic development. Driven by the domestic economy and private consumption, companies have built up a buffer against crises in recent years", commented CRIF BÜRGEL Managing Director Ingrid Riehl on the current figures. Moreover, due to the low interest rate, companies can take out loans with favorable conditions without any major problems.
For the coming year, however, CRIF BÜRGEL expects an increase in company bankruptcies to 19,500 cases. "The weakening of the economy in Germany will also be reflected in the insolvency figures in 2020," said Riehl. "In addition, the rising number of major insolvencies in 2019 will lead to a domino effect, which in many cases means that insolvent companies will drag other companies into insolvency with them," Riehl explained. The most prominent bankruptcies in 2019 included Thomas Cook, Germania, the fashion chain Gerry Weber, and the TV manufacturer Loewe.
The damage caused by corporate insolvencies totaled almost 25 billion euros in 2019. On average, creditors suffered bad debt losses of nearly EUR 1.3 million per insolvency.
