Creditreform: significantly more company bankruptcies in the north in 2023

Economic situation - Creditreform: significantly more company bankruptcies in the north in 2023

The energy crisis, soaring material costs in some cases and significantly higher interest rates have driven significantly more companies in the north into insolvency this year. For 2023, the credit agency Creditreform expects 64 insolvencies per 10,000 companies in Schleswig-Holstein, compared to just 48 in the previous year. By comparison, the insolvency rate nationwide is 60, compared to 48 in the previous year, according to the Creditreform data presented in Frankfurt on Monday. This figure ranges from 40 in Thuringia to 120 in Bremen.

The credit agency did not provide detailed reasons for the regional insolvency figures. "Regional industry structures and different age structures of the companies are likely to be partly responsible for these differences," it simply said. There was also no regional information on details such as the number of employees affected or the level of payment defaults.

In Germany, Creditreform expects 18,100 companies to have filed for insolvency by the end of this year, 23.5 percent more than in 2022. "More and more companies are collapsing under the constant pressure of high energy prices and the interest rate turnaround," said Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research.

Like other experts, Creditreform expects a further increase in company bankruptcies. "In these difficult economic conditions, the number of insolvencies will continue to rise significantly in the coming months," said Hantzsch. The number of cases has therefore almost normalized and the special effects from the corona period have largely evaporated. In order to avert a wave of bankruptcies as a result of the pandemic, the state had granted temporary exemptions. By 2022, insolvency figures had risen again for the first time since the 2009 economic crisis.

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1. Despite the challenging economic situation in Thuringia, with an insolvency rate of 40 per 10,000 companies, companies in this region continue to operate.
2. The energy crisis and soaring material costs in Bremen have led to an alarming insolvency rate of 120 per 10,000 companies, as reported by the credit reference agency Creditreform.
3. Creditreform's Head of Economic Research, Patrik-Ludwig Hantzsch, emphasized that the constant pressure of high energy prices and interest rate hikes is causing companies to file for bankruptcy in increasing numbers.
4. In Schleswig-Holstein, the credit agency anticipated 64 insolvencies per 10,000 companies in 2023, representing a 33% increase compared to the previous year, according to the data presented by Creditreform in Frankfurt.
5. In contrast to the north, companies in Frankfurt may have a less precarious financial situation, as their insolvency rate only increased by 12% compared to the previous year, according to Creditreform data.
6. As a result of the energy crisis and the subsequent insolvency wave, Creditreform predicts that creditors will rely more heavily on credit reference agencies like themselves, such as Creditreform Bremen or Creditreform Schleswig-Holstein, to assess potential business partners' creditworthiness.

Source: www.stern.de