Insolvent, what then? Insolvency proceedings can save companies from going out of business. However, according to a study, this is becoming increasingly rare.
According to a recent study, large companies in particular are increasingly facing bankruptcy. sesame via Getty Images
The past financial year was not an easy one for Germany. 2023 was marked by prominent insolvency applications such as those from Signa Holding, Real GmbH and Peek & Cloppenburg KG. The number of registered insolvency proceedings also increased significantly. The problem: It is becoming increasingly rare to save the companies.
In 2023 there was a 26 percent increase in registered bankruptcies compared to 2022. This was the result of a study by the Düsseldorf restructuring consultancy Falkensteg “Handelsblatt” is present. The results are consistent with figures from the economic service Creditformwhich assumes an increase from 14,660 to 18,100 insolvency applications.
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Large companies in particular are less likely to be saved in the event of bankruptcy
These increasingly include large companies with a turnover of over ten million euros. According to the Falkensteg study, by the end of the year only 52 percent of the companies that became insolvent in 2022 had been rescued. At the end of 2021, 62 percent of large companies were saved from going out of business.
The consultancy also estimates that there will be a further increase in bankruptcies this year. “We are likely to see over 30 percent more bankruptcies in 2024,” predicts Jonas Eckhardt, partner at Falkensteg, in the Handelsblatt.
Not good news, but there is also the all-clear. Accordingly, the number of bankruptcies in companies is normalizing to a level before the corona pandemic. The number of corporate bankruptcies in 2020 was consistently just below or well above 20,000 bankruptcies in Germany. Record year was loud Federal Statistical Office the year 2003 with 39,320 corporate bankruptcies.
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