Corporate bankruptcies in Germany rose significantly in the first quarter of 2026. Local courts reported 6,275 business insolvencies—an increase of 6.5 percent compared to the same quarter of the previous year. In March alone, the number of insolvencies climbed by 15.8 percent to 2,308 cases. The transport, hospitality, and construction sectors were particularly affected. At the same time, high costs, weak demand, and low financial reserves are hampering efforts to turn many businesses around. Consumers also faced payment difficulties more frequently, while the total value of creditor claims dropped sharply due to a decline in large-scale insolvency proceedings.
Corporate insolvencies hit the transport, hospitality, and construction sectors particularly hard
In the first quarter, there was an average of 17.7 insolvency cases per 10,000 companies; however, the transport and warehousing sector recorded 32.1 cases. This placed the industry well above the national average. High operating costs are weighing on many logistics companies, while fluctuating order volumes make planning difficult.
Image: Shutterstock
The hospitality sector followed with 30.3 insolvencies per 10,000 companies. Meanwhile, the construction industry recorded a rate of 26.7 cases. Restaurants are struggling with high costs for personnel, energy, and supplies. Construction firms are also feeling the impact of weak demand for new residential and commercial properties.
Fewer large-scale insolvencies reduce total claims
Local courts estimated creditors’ claims at around €9.3 billion. A year earlier, however, the figure stood at €19.9 billion. Consequently, this decline does not signal a broad economic recovery; in the same quarter of the previous year, several major insolvency proceedings had significantly inflated the total sum.
The rise in corporate insolvencies is increasingly affecting small and medium-sized enterprises (SMEs). While these companies typically generate smaller individual claims, they secure a large number of regional jobs. Furthermore, suppliers, landlords, and service providers often rely on payments from them; thus, a single insolvency can place a strain on other businesses within the supply chain.
Statistics capture only a fraction of business closures
Official statistics only track companies involved in insolvency proceedings that have been formally opened or dismissed due to a lack of assets. Other business closures are not reflected in these figures, meaning the actual scale of economically driven closures is higher. Additionally, statistical recording often takes place several weeks after the insolvency application is filed.
The impact of corporate insolvencies from 2025 also continues to be felt. At that time, Destatis recorded 24,064 corporate insolvencies—an increase of 10.3 percent compared to 2024. Creditreform also calculated substantial losses for creditors and noted a large number of jobs at risk. High financing costs, weak investment, and structural pressures therefore remain key drivers of the situation.
Consumer bankruptcies are also increasing significantly
In March, the courts reported 7,462 consumer bankruptcies. That was 18.9 percent more than in March 2025. For the entire first quarter, there was an increase of six percent to 19,679 cases. High living costs and loss of income are exacerbating the situation of many households.
The development therefore affects companies and consumers at the same time. Companies lose demand while households have less financial flexibility. At the same time, job cuts and company closures increase the risk of further payment defaults. The current figures do not yet show any rapid economic relief.
Author: Blackout News
Sources: Handelsblatt (12.06.26) – Destatis (Stand 12.06.26) – Leibniz Institut für Wirtschaftsforschung (09.06.26)