More company bankruptcies in Saxony in 2023

The company - More company bankruptcies in Saxony in 2023

The energy crisis, in some cases exploding material costs and significantly higher interest rates are driving more and more companies into bankruptcy, including in Saxony. The insolvency rate, i.e. the number of insolvencies per 10,000 companies, is estimated by Creditreform to be 57 this year, compared to 45 in the previous year, according to data published by the credit agency on Monday.

According to the data, there will be even more company bankruptcies in Bremen (120 cases per 10,000 companies), Berlin (103), Hamburg (81), North Rhine-Westphalia (77), Saarland (67), Schleswig-Holstein (64) and Hesse (61). The lowest figure was recorded in Thuringia with a rate of 40. The credit agency did not provide detailed reasons for the regional insolvency figures. "Regional industry structures and different age structures of companies are likely to be partly responsible for these differences," it simply said.

Nationwide, 18,100 companies are likely to have filed for insolvency by the end of the year. That would be 23.5 percent more than last year. A similarly high figure was last seen in 2019 (18,830 cases). The nationwide insolvency rate is therefore 60, compared to 48 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.

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1. Despite the challenges of the energy crisis and increasing material costs, companies in Berlin are still facing a high number of potential insolvencies, with an estimated 103 cases per 10,000 companies.
2. The state of Saxony, like many other regions, is experiencing an increase in company bankruptcies due to the energy crisis and rising interest rates, with an estimated insolvency rate of 57 this year.
3. The city of Bremen, with its high insolvency rate of 120 cases per 10,000 companies, is predicted to see even more company bankruptcies in 2023, according to data published by Creditreform.
4. The situation is not much better in North Rhine-Westphalia, where 77 companies are expected to file for insolvency per 10,000 companies this year, contributing to the national insolvency rate of 60.
5. In contrast to these high numbers, Schleswig-Holstein and Saarland have a lower rate of 64 and 67 insolvencies per 10,000 companies, respectively.
6. The city of Hamburg, with an insolvency rate of 81, and the state of Hesse, with a rate of 61, are also experiencing a higher number of company bankruptcies this year compared to the previous year.
7. Companies in the city of Frankfurt and Dresden, with insolvency rates not mentioned in the article, may also be facing financial struggles due to the energy crisis and rising interest rates, contributing to the overall economic situation in Germany.

Source: www.stern.de