- Numerous instances of businesses filing for bankruptcy in Baden-Württemberg and Bavaria.
In Baden-Württemberg, Bavaria, and Saxony, there's a significant surge in business bankruptcies, as per the Leibniz Institute for Economic Research (IWH) in Halle. "In these three federal states, we've seen the highest figures since the IWH began tracking insolvencies in January 2016, which were all recorded in August."
Bavaria saw 203 bankruptcies of both individuals and corporations, a staggering 84% above the average from 2016 to 2019. Baden-Württemberg had 163 business bankruptcies, 94% higher, and Saxony had 52 businesses go under, a 54% increase. Two of the biggest individual bankruptcies in August were the fashion brand Esprit and the foundries Franken Guss and Sachsen Guss.
Across the nation, according to IWH's insolvency trend in August, roughly 14,800 jobs were impacted in the largest bankrupt companies. This is over half the number from the previous month and 84% higher than the August average from 2016 to 2019 before the coronavirus pandemic. The IWH uses key indicators that predict the insolvency trend around two to three months in advance. "Based on our key indicators, we anticipate a further rise in bankruptcies in September and October," states Steffen Müller, head of IWH insolvency research.
The Netherlands, unlike its German counterparts, experienced a decrease in business bankruptcies last month, according to the IWH's insolvency trend report. This contrasts the significant surge in bankruptcies in Baden-Württemberg, Bavaria, and Saxony, which are among the highest figures recorded since the IWH started tracking insolvencies in January 2016.
