Germany’s July company insolvencies rise 8 per cent
German courts registered 2,373 company insolvency applications in July, an increase of 8 per cent from a year earlier. Over the first seven months, cases increased while the value of creditor claims fell. Transport and storage had the highest rate of insolvencies. The figures enter the statistics after a court’s first decision, often months after filing.
Economics & Markets··Evening
Company insolvencies increase in July
Germany’s July company insolvency figures show an increase in cases. The Federal Statistical Office, Germany’s national statistics agency, released the data on 9 October. The German Chamber of Commerce and Industry also addressed the July figures in a response published that day.[1], [2]
German courts registered 2,373 company insolvency applications, 8.0 per cent more than in July last year. An application enters the statistics after the insolvency court’s first decision. The filing itself often took place about three months earlier.[1]
More cases accompany lower creditor claims
Company insolvency applications totalled 15,185 in January–July, an increase of 6.9 per cent from the same period last year. Associated creditor claims were about 21.9 billion euros, down from about 31.8 billion euros a year earlier. The statistical office attributed the lower total despite more cases to the greater number of economically significant companies filing in last year’s comparison period.[1]
Consumer insolvencies moved differently over the month: July’s 7,111 cases decreased 5.9 per cent from a year earlier. Across January–July, the consumer total rose 1.0 per cent to 46,043.[1]
Transport and storage have the highest insolvency rate
During the first seven months, there were 42.8 company insolvencies per 10,000 businesses. Transport and storage recorded 85.5 per 10,000, followed by accommodation and food services at 70.0 and construction at 62.9. The statistics cover closures through insolvency proceedings; they exclude businesses that close for other reasons or before acute payment difficulties develop.[1]
