Insolvencies 2025: Highest level in ten years

Insolvencies 2025: A look back at a crisis year

The economic hopes for a recovery in 2025 were not fulfilled. After two declining years, the gross domestic product stagnates - a clear expression of the ongoing economic weakness, which places Germany at the bottom of the growth scale in a European comparison. The industry is particularly affected, struggling with high costs, declining competitiveness, and increasing bureaucracy. The structural problems are unmistakably reflected in a dynamic insolvency trend.

As the annual analysis “Insolvencies in Germany 2025” by Creditreform Economic Research shows, the number of corporate insolvencies rose by 8.3 percent to 23,900 cases - the highest level since 2014. Although the increase was smaller than in previous years (2023: +22.9%, 2024: +22.5%), there is still an increase of over 9,000 cases compared to 2022.

Micro-enterprises particularly affected

By far the most affected were micro-enterprises with up to ten employees. In this segment, according to Creditreform, there were about 19,500 insolvencies - an increase of 8.9 percent compared to the previous year. This group accounted for 81.6 percent of all insolvencies. Even though the absolute damage per insolvency case is generally higher for larger companies, it is the micro-enterprises where failure often has existentially threatening effects on owners and their families.

Significant losses for creditors and employees

The economic consequences of the insolvencies are substantial. Creditreform estimates the damage amount for the year 2025 at around 57 billion euros, nearly at the previous year's level. On average, the threatened claims per case amount to more than two million euros. Creditors often receive only a fraction of their claims. At the same time, around 285,000 employees lost their jobs due to corporate insolvencies - a number that almost matches the previous year's figure and underscores the persistently high level of strain.

Age structure of insolvent companies

The insolvency analysis by Creditreform shows: Insolvencies affect all age groups. Particularly young companies (up to two years old) recorded an increase of 12.6 percent. Companies in the "cursed seventh year" had the highest insolvency rate. Companies older than ten years proved to be somewhat more robust - they still accounted for the largest share of insolvencies at 42.2 percent.

GmbH dominates the insolvency scene

Corporations like the GmbH were disproportionately affected by insolvencies in 2025. With a 46.5 percent share, this legal form is significantly ahead of sole proprietorships (36.4%) and entrepreneurial companies (UG, 10.1%). The trend shows that GmbHs are often used for restructuring - or for shedding legacy burdens through regulated procedures. These developments are documented in detail by Creditreform in the legal form analysis.

Industries in crisis mode

The insolvency situation affected all major economic sectors. The trade sector was particularly affected with an increase of 10.4 percent, as well as the manufacturing industry with a growth of 10.3 percent. In the service sector, cases increased more moderately by 8.4 percent, while the construction industry recorded the smallest increase at 4.7 percent. Nevertheless, the number of cases in all mentioned industries is now about one-third above the pre-crisis level of 2019. The basis of this industry evaluation is the detailed analysis of the Creditreform economic database.

Regional differences

While Berlin had the highest rate with 130 insolvencies per 10,000 companies, Thuringia was significantly lower with 48. A noticeable increase was seen in almost all federal states. In particular, the rate increased by ten points each in North Rhine-Westphalia and Rhineland-Palatinate. According to Creditreform, the regional distribution can partly be explained by different industry structures.

Major insolvencies with a signaling effect

Several major insolvencies shaped the year 2025. The health and care sector was particularly affected. Institutions such as the DRK Hospital Society, the Erzgebirgsklinikum, or Argentum Pflege Holding GmbH had to file for insolvency. There were also significant developments in retail companies like Hammer Fachmärkte, KODi, and Polo Motorrad. In the automotive sector, it affected companies such as Gerhardi Kunststofftechnik and VOIT Automotive. Creditreform lists these cases in a separate overview of major insolvencies.

Corporate creditworthiness continues to decline

The economic difficulties are increasingly reflected in credit ratings. Between 2019 and 2025, creditworthiness deteriorated in almost all sectors. According to Creditreform, the hospitality industry, the healthcare sector, and the financial and insurance services sector are particularly affected. With a credit index of 292, the hospitality industry is at the bottom. The best rating was received by the mining industry with an index value of 228.

With material from Creditreform