This spring, Germany has recorded the highest number of company bankruptcies in 21 years, with a total of 4,996 personal and corporate insolvencies registered from April to June, as reported by the Leibniz Institute for Economic Research in Halle (IWH). This figure reflects the highest level since the second quarter of 2005.
The number of bankruptcies increased by 9% compared to the first quarter of 2026, with nearly all major industries affected, according to researchers. In June alone, there were 1,702 bankruptcies, representing a 12% increase from the previous month and a substantial 20% rise compared to June 2025.
Steffen Müller, head of bankruptcy research at IWH, commented, “Current data indicates that the number of bankruptcies remains exceptionally high. The situation is challenging; a wide range of sectors and regions are simultaneously impacted. We should continue to expect higher bankruptcy numbers in the third quarter compared to last year,” he assessed.
The bankruptcy trend identified by IWH serves as a leading indicator and reflects the state of the economic climate. The Saxony-Anhalt Institute processes current bankruptcy announcements published by German registries and correlates them with financial data from the affected companies.
How Many Companies Can Be Saved?
Finding a way to salvage larger businesses undergoing bankruptcy is becoming increasingly rare. Research by consulting firm Falkensteg revealed that in the previous year, only one in three companies that declared bankruptcy was ultimately saved or sold to investors. This is a significant decline from 57% in 2020. The analysis included 486 bankruptcy proceedings involving companies with annual revenues exceeding 10 million euros.
