Money Matters - Businesses Seek Increase in Bankruptcy Proceedings
Corporate bankruptcies in Baden-Württemberg have seen a major surge, with 642 insolvency applications filed in the first quarter of this year. That's around a third more than the same period last year, the Statistical State Office reported on Monday.
The construction industry (105 applications) and trade (92 applications) bore the brunt of the economic downturn. Retail also suffered heavily, with 47 insolvency applications - almost double the number in the previous year's period.
The number of private individuals seeking insolvency also rose, with 2704 applications filed, a 11% increase over the previous year. Over 60% of these private insolvencies involved consumers. The remaining applications came from former self-employed individuals and former fully liable partners.
In total, there were 3328 insolvency proceedings filed between January and March this year. The anticipated debt owed to creditors is estimated at around €977 million.
Read also:
- The surge in corporate bankruptcies in Baden-Württemberg has led many companies to seek legal advice on corporate insolvency, with Stuttgart being a hub for such services.
- The economic situation in the Southwest region has been heavily impacted by the increase in company bankruptcy filings, with finances becoming a significant concern for businesses.
- Statistics show that the construction industry and trade sectors have been particularly hard hit by company bankruptcy proceedings, with retail struggling as well.
- A company based in Baden-Württemberg, facing financial difficulties, recently entered insolvency proceedings, contributing to the overall number of 3328 filings in the first quarter of the year.
- Economic analysts suggest that the rise in company bankruptcies and insolvency proceedings may have repercussions on the wider Southwest economy, leading to potential job losses and business closures.
