- Soaring bankruptcy filings are on the rise in the Southwestern region.
Observed a notable surge in corporate bankruptcies in Baden-Württemberg. Between January and July, a grand total of 1,245 bankruptcy filings were made at the local courts, as per the State Statistical Office's data. This signifies a jump of 340 instances or a 37.6% increase compared to the first half of 2023. The area with the most bankruptcies per 1,000 companies was Mannheim's city district, while Waldshut had the least.
Over 11,300 workers experienced the impact of their company's bankruptcy during the first half of the year. The statisticians predict that this number could be even higher in reality, as jobs are often eliminated before the bankruptcy process commences and details about employee numbers aren't always available. The anticipated claims from creditors amounted to roughly 1.8 billion euros.
Elevation observed in 2023
Moreover, 5,400 personal debtors initiated bankruptcy proceedings, marking an upward trend of 737 instances or 15.8% compared to the preceding year. This suggests a combined total of approximately 6,650 corporate and personal bankruptcies in the initial six months of the year. These figures stem from an analysis of the insolvency statistics.
The number of corporate bankruptcies in the southwest had already swelled by nearly 25% to 1,875 in 2023. While this figure is higher than 2023's, it still falls below the long-term average. Experts had anticipated that an even greater number of companies would grapple with financial struggles in the current year. Factors contributing to this include the Corona period's weakening, sky-high energy prices, increased interest rates, and the expiration of special rules designed to deter a wave of bankruptcies during the pandemic.
The increase in corporate bankruptcies has led to significant job losses, with over 11,300 workers experiencing the impact of their company's bankruptcy during the first half of the year. This trend is likely to continue, as the anticipated claims from creditors amount to a substantial 1.8 billion euros. The bankruptcy of a company can have far-reaching consequences, affecting not only its employees but also its creditors and suppliers.
