- Company insolvencies increased by 23.1% to 21,964 cases
- Highest figure since 2015 - sharp rise in insolvency losses
- Insolvencies by federal state: Berlin tops the stats with 114 insolvencies per 10,000 companies
Last year, 21,964 companies filed for insolvency in Germany. This represents a 23.1% increase in corporate insolvencies compared with the same period in the previous year (2023: 17,847 corporate insolvencies). These are the key findings of the analysis of corporate insolvencies in 2024 by information service provider CRIF. This analysis shows that last year, the number of corporate insolvencies reached its highest level since 2015 (23,222 insolvencies). Since the introduction of the new Insolvency Code in 1999, there has not been a greater percentage increase in any year.
Forecast: increase to up to 26,000 insolvencies in 2025
"Companies in Germany continue to face significant challenges, particularly high energy costs, supply chain disruptions, and geopolitical and political uncertainties. Consumers' reluctance to spend due to increased costs has reduced their purchasing power, which in turn has a negative impact on companies. This resulting loss of purchasing power puts an additional burden on companies. The financial situation of many companies is also being negatively impacted by increased production costs, fewer orders, and higher staffing costs," CRIF Germany Managing Director Dr. Frank Schlein commented on the current figures. All in all, the existence of not just one, but several parallel crises is leading to more financial instability for companies.
As an export-orientated economy, Germany is also severely affected by weak global trade. Persistent slow growth is increasingly undermining business stability, and insolvencies are expected to continue rising in 2025—the current CRIF forecast is for up to 26,000 insolvencies. This corresponds to an increase of up to 18.4%. "Given the double-digit growth rates in recent months, it is becoming increasingly difficult to dismiss the surge in insolvencies," added Dr. Schlein.
The increasing number of major insolvencies is expected to trigger further cases. In 2024, insolvency-related losses more than doubled to a value of €55 billion (2023: €26.5 billion). As a result, domino effects are likely, with insolvent companies pulling other companies into insolvency over time.
The detailed analysis also shows that the majority of companies—around 90%—are still financially sound, with just under 312,000 companies (10.2% of companies in Germany) currently experiencing financial difficulties. For this analysis, CRIF examined approximately three million companies in Germany, assessing their creditworthiness and financial strength.
Highest insolvency rate in Berlin
In 2024, Berlin recorded the highest insolvency rate with 114 insolvencies per 10,000 companies, while the national average was 71 insolvencies per 10,000 companies. There were also comparatively high figures in Bremen (98 insolvencies per 10,000 companies), Hamburg (96), North Rhine-Westphalia (91), and Schleswig-Holstein and Saarland (75 each). Thuringia reported the lowest number of company insolvencies in 2024 (41 per 10,000 companies), followed by Bavaria (52) and Mecklenburg-Western Pomerania (54).
In absolute terms, the federal states of North Rhine-Westphalia (5,730), Bavaria (2,992), and Baden-Württemberg (2,476) reported the highest number of corporate insolvencies.
Decline in insolvencies in Bremen
Compared with 2023, the number of corporate insolvencies rose in 15 out of 16 federal states across Germany. Only Bremen recorded fewer insolvencies than in 2023, with a decrease of 11.5%. Significantly more corporate insolvencies were reported in Lower Saxony (up 35.4%), Baden-Württemberg (up 33.0%), and Berlin (up 29.4%).
Indicators of potential insolvency
In business practice, typical behavioral patterns can be identified that indicate a company's precarious situation. These include, for example, a deterioration in payment reliability, a change in ordering behavior, or frequent changes in management, bank details, or company name. Other indicators include payment delays due to unjustified defect claims, broken verbal commitments, or frequently requests for copies of invoices. Other signs include a halt in investments and the use of outdated production facilities. Indications of financial stress also include the ongoing drawdown of equity capital or multiple increases in credit lines (use of debt capital).
