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German Firms Flag Survival Risk as Insolvencies Hit Highest Since 2005

Fresh data point to persistent strain that is likely to keep failures elevated.

Overview

  • An Ifo survey released Monday found 8.1% of companies fear they may not survive, and the institute warned insolvency counts are likely to stay high in the coming months.
  • Retail posted a record 17.4% share of firms at existential risk, with hospitality near 20%, reflecting weak consumer spending and tougher competition from online and low‑cost foreign sellers.
  • IWH reported 1,776 corporate insolvencies in April, the most since 2005 and about 82% above a typical April in 2016–2019.
  • Companies most often cite missing orders and higher energy and operating costs, and many report cash squeezes that spread through supply chains when customers cancel work or go bust.
  • Recent moves by Wacker, Festo, TE Connectivity and Porsche to cut jobs or shut units show how demand and cost pressures are hitting workers and local economies.