Lowest number of corporate insolvencies in Germany in 2019
The number of corporate insolvencies in Germany falls 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 last year (2018: 19,552 corporate insolvencies). As a result of what is now the tenth decline 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 still 39,320 corporate bankruptcies in Germany, the number of insolvencies in 2019 has thus more than halved. "Companies in Germany benefit 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", comments CRIF BÜRGEL Managing Director Ingrid Riehl on the current figures. Moreover, due to the low interest rate level, companies can take out loans at favourable 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," says Riehl. "In addition, the rising number of major insolvencies in 2019 will lead to domino effects, which in many cases ensure that insolvent companies will drag other companies into insolvency with them," Riehl analyses. 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.
Read the entire analysis on crifbuergel.de