The number of company insolvencies is increasing: For the first half of 2023, the credit agency Creditreform from Kassel reports seven insolvency proceedings filed in Waldeck-Frankenberg, in 2022 there were only four.
Waldeck-Frankenberg – Creditreform is seeing an increase throughout northern Hesse. Nationwide, the increase is 20.5 percent compared to the same period last year, explains the Federal Statistical Office in Wiesbaden.
It also reports that the number of bankruptcies rose by 13.8 percent in August compared to the same month last year. In July 2023 it had even increased by 23.8 percent compared to July 2022.
Insolvency numbers have increased throughout northern Hesse
According to the credit agency Creditreform in Kassel, the number of insolvencies across northern Hesse rose again in the first half of 2023 for the first time since the beginning of the pandemic.
In Waldeck-Frankenberg Seven companies had applied for insolvency proceedings; in 2022 there were only four.
In Hersfeld-Rotenburg there were eight companies, and in 2022 there will be seven
In the Werra-Meißner district Ten companies were affected, and in 2022 there were seven.
In Schwalm-Eder There were 13 insolvent companies, and only eight in 2022.
In Kassel there were 43 bankruptcies, in 2022 only 32. red
Different industries affected
According to the Federal Office, most of the insolvencies occurred in the “transport and warehousing” sectors, followed by service providers such as temporary employment agencies. They notice the global economic crises and the decline in German exports.
Creditreform reports an increase in the number of insolvencies in the manufacturing sector by 22.6 percent, in retail by 18.5 percent and in services by 16.7 percent. In the construction industry, the increase of 9 percent is still below average.
“After corporate insolvencies rose again at the end of 2022 after many years of declining numbers, this trend accelerated in the first half of 2023,” reports Creditreform. However, the level of the comparable period in 2020 has not yet been reached again. Compared to the first half of 2019, the number is even 13 percent lower.
Significant cost increases
Creditreform analyzes that higher energy prices and inflation have led to significant cost increases for companies. Uncertainty and the fight against inflation through rising interest rates have slowed consumption and demand. “The German economy slipped into recession and numerous companies got into difficulties.” The economic prospects for this year are “cautious to bleak”. The credit agency therefore expects a further increase in the number of cases.
The service industry accounts for the largest share of insolvencies at 57.4 percent, followed by retail at 19 percent. The share of the construction industry is declining slightly – from 16.9 at the beginning of last year to 15.8 percent in 2023.
Billions in damages due to bankruptcies
Insolvency creditors such as suppliers or lenders recorded losses estimated at 13 billion euros in the first half of 2023 – in the same period last year it was 9.8 billion euros. The number of jobs threatened by insolvency has increased significantly.
Impact on the labor market
The economic situation is having an impact on the placement of unemployed people, reports the head of the Waldeck-Frankenberg job center, Otto Richter: job offers, for example in temporary work, have disappeared. The number of vacancies also fell in September, reports the head of the Korbach employment agency, Uwe Kemper.
Special effects
When comparing the figures from previous years, special effects should be taken into account: During the Corona restrictions, the reporting requirement for insolvencies was suspended until June 2021. In addition, struggling companies were able to stay afloat with Corona aid.
More companies registering than deregistering
According to the Federal Statistical Office, around 317,600 new commercial businesses were founded in Germany in the first half of 2023, an increase of 10.2 percent compared to the same period last year.
The total number of business registrations increased by 8.9 percent to around 381,200 companies. In addition to new start-ups, this also includes business takeovers and conversions such as mergers.
The total number of complete commercial closures in the first half of 2023 was around 246,500 companies, 14 percent higher than in the same half of the previous year.
The Federal Statistical Office emphasizes that new company registrations and overall business closures should also be taken into account when assessing the economic situation: some owners give up before bankruptcy occurs.
Company saved
Insolvency does not automatically mean the end of a company: the aim of the procedure is to preserve businesses and therefore jobs as much as possible. In February, the Volkmarser Phönix-Armaturen-Werke had to file for bankruptcy. In August, the family-run Italian Valvosider Group joined the traditional company, which has existed for 110 years, and is continuing production seamlessly with 100 of the original 160 employees.
Fewer consumer bankruptcies
The Federal Statistical Office registered a decline in consumer insolvencies in the first half of 2023: with 33,140 cases, the number fell by 1.9 percent compared to the first half of 2022. -sg-
2023-10-18 08:33:34
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