More company bankruptcies in Hesse in 2023

The company - More company bankruptcies in Hesse in 2023

High energy prices and increased interest rates are also weighing on companies in Hesse. More and more companies are going bankrupt. According to Creditreform estimates, the insolvency rate, i.e. the number of insolvencies per 10,000 companies, has risen from 53 to 61 in Hesse this year.

Bremen (120 cases per 10,000 companies), Berlin (103 cases), Hamburg (81), North Rhine-Westphalia (77), Saarland (67) and Schleswig-Holstein (64) have significantly higher rates, according to data published by the credit agency on Monday. The regional industry structure and different age structures of the companies are likely to be partly responsible for the differences, it said. The rate is lowest in Thuringia (40).

According to the figures, there is a clear increase in company bankruptcies nationwide. By the end of the year, 18,100 companies are likely to have filed for insolvency. That would be 23.5 percent more than in the previous year. "More and more companies are collapsing under the constant pressure of high energy prices and the interest rate turnaround," explained Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research.

Like other experts, Hantzsch also expects a further increase in company bankruptcies: "The number of insolvencies will continue to rise significantly in the coming months in these difficult economic conditions." 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 allowed temporary exemptions in insolvency law.

Press releases VID Creditreform: Insolvencies 1st half of 2023 Insolvency forecast Allianz Trade

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1. In contrast, companies in Hesse are struggling with higher energy prices and interest rates, leading to an increase in company bankruptcies.
2. Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research, attributes this trend to the constant pressure of high energy prices and the interest rate turnaround.
3. The insolvency rate in Schleswig-Holstein, with 64 cases per 10,000 companies, is significantly lower than in Hesse but still higher than in Thuringia, which has the lowest rate at 40.
4. Frankfurt on the Main and Bremen, with 56 and 120 cases, respectively, also have higher insolvency rates than Hesse, according to Creditreform's data.
5. The economic situation in North Rhine-Westphalia, Hamburg, Berlin, Saarland, and other regions has resulted in higher insolvency rates compared to Hesse.
6. The state made temporary exemptions in insolvency law to avert a wave of bankruptcies as a result of the pandemic; however, these special effects have now largely disappeared.
7. Companies in Germany, including those in regions like Bremen, Berlin, Hamburg, North Rhine-Westphalia, Saarland, Hesse, and Schleswig-Holstein, are experiencing increased company bankruptcies, with Bremen having the highest rate of 120 cases per 10,000 companies.

Source: www.stern.de