Company bankruptcies: Number will increase greater than anticipated in Germany in 2024 | EUROtoday

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Number of firm bankruptcies in Germany rises greater than anticipated

The reasons given for the wave of insolvencies are the aftermath of the corona pandemic, inflation, rising energy costs and weakening demand The reasons given for the wave of insolvencies are the aftermath of the corona pandemic, inflation, rising energy costs and weakening demand

The causes given for the wave of insolvencies are the aftermath of the corona pandemic, inflation, rising vitality and materials prices and weakening demand

Source: dpa/Jonas Walzberg

According to an evaluation by restructuring consultancy Falkensteg, there have been 41 % extra bankruptcies within the first half of 2024 than in the identical interval final yr. This signifies that the quantity is comparatively nicely above the rise anticipated by specialists. Three sectors particularly are affected.

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DAccording to a media report, the variety of bankruptcies in Germany has risen greater than anticipated this yr. In the primary six months of this yr, 162 firms with a turnover of greater than ten million euros received into monetary difficulties – a rise of 41 % in comparison with the identical interval final yr, stories the “Handelsblatt” newspaper, citing an evaluation it commissioned from the restructuring consultancy Falkensteg.

The variety of bankruptcies is thus considerably increased than the 30 % improve that restructuring specialists had already anticipated firstly of the yr. Real property firms, automotive suppliers and mechanical engineering firms are significantly affected. Among the bancrupt firms are distinguished names such because the tour operator FTI, the division retailer chain Galeria and the style firm Esprit.

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Of the 279 firms examined that needed to file for chapter in 2023, solely 35 % could possibly be saved by the top of the primary half of 2024 – by a sale to an investor or as a result of collectors agreed to an insolvency plan. In the identical interval three years in the past, this was nonetheless profitable in 57 % of instances.

The causes given for the wave of insolvencies are the aftermath of the corona pandemic, inflation, rising vitality and materials prices and weakening demand. Locational disadvantages reminiscent of a scarcity of expert staff and paperwork make issues worse. Global crises, poor financial prospects and excessive rates of interest are making restructuring and investing in ailing firms more and more unattractive.

https://www.welt.de/wirtschaft/article252425532/Firmenpleiten-Zahl-steigt-in-Deutschland-2024-staerker-als-erwartet.html