- Companies are filing for more insolvency
The number of company insolvencies in Baden-Württemberg continues to rise. From January to May, 1,058 corporate insolvencies were filed with the local courts, as announced by the Statistical Office. This was 302 cases or almost 40 percent more than in the same period of the previous year. Particularly affected were the construction industry (196 applications) and retail (164 applications). In the latter, the number of cases was almost twice as high as in the previous year.
Overall, more than 10,000 employees were affected by the insolvency of their company from January to May. According to the statisticians' estimate, this number is likely even higher in reality, as jobs are often cut before an insolvency procedure and the number of employees is not known for all cases. The anticipated claims of creditors amounted to around 1.5 billion euros.
Increase already in 2023
In addition, according to the information, 4,550 private debtors filed for the opening of an insolvency procedure - 610 or 15.5 percent more than in the previous year. This resulted in a total of around 5,600 corporate and private insolvencies in the first five months of the year. The data comes from an evaluation of the insolvency statistics.
The number of company insolvencies had already increased by almost a quarter to 1,875 in 2023. However, compared to the long-term average, the number was still relatively low. Experts had also expected that more companies would get into difficulties in the current year. Reasons for this include the weakening during the Corona years, high energy prices and increased interest rates. Furthermore, special rules that the state had introduced to prevent a wave of insolvencies during the pandemic had expired.
The rise in company insolvencies in Baden-Württemberg was significantly higher in the first five months of this year compared to the same period last year, as indicated by the statistics. According to the statistics, there were 1,058 corporate insolvencies filed between January and May, representing a 40% increase.
