Berlin, September 11, 2024. The number of corporate insolvencies rose again in August 2024. Insolvencies of larger companies are not an exception, but part of the normalization of insolvency events.
The Federal Statistical Office* today published the number of corporate insolvencies for the first half of 2024 and the development for the past month of August. According to this, the number of corporate insolvencies applied for in the first half of 2024 rose by 24.9 percent compared to the same period last year. According to preliminary information, the number of corporate insolvencies applied for in August 2024 rose by 10.7 percent compared to August 2023.
„Despite the increased number of corporate insolvencies, we still do not see a dramatic change, but rather a normalization after the Corona period with historically low insolvency figures“, says Dr. Christoph Niering, insolvency administrator and chairman of the Professional Association of Insolvency Administrators and Trustees in Germany (VID). “We are far from the figures at the time of the financial crisis, which in 2009 amounted to just under 33,000 corporate bankruptcies“, says Niering. Experts expect fewer than 22,000 corporate bankruptcies this year.
Currently, there is a particular increase in large-scale insolvencies involving many employees. However, their percentage share of the total number of insolvencies is rather low. By far the largest share of corporate insolvencies involves small businesses with up to ten employees. “And should a large company go bankrupt, the probability of a successful restructuring is significantly higher than for smaller companies. This also helps to preserve jobs“, said the VID chairman.
During the financial crisis, insolvency meant long-term unemployment for many employees.Unlike ten years ago, many of the employees affected by insolvency find new employment very quickly if they are laid off. This is because companies are struggling with a sometimes serious shortage of skilled workers and labor for demographic reasons alone.“, so Niering.
About the VID
The Association of Insolvency Administrators and Trustees in Germany is the professional association of insolvency administrators and trustees working in Germany. With more than 470 members, it represents the vast majority of this professional group. Members commit to the “principles of proper insolvency and self-administration” and to certification according to ISO:9001. The association has thus set standards for independent, transparent and high-quality insolvency administration.
