Corporate Insolvencies at Record Levels: Why Action Is Needed Now

In 2025, there were more corporate bankruptcies and major insolvencies than at any time in the past ten years. This makes it all the more important for companies to identify domino effects early on and take targeted countermeasures.

Now it’s official: The figures for the first three quarters of 2025, as well as Creditreform’s projections, had already suggested that insolvencies rose sharply last year—and now figures from the Federal Statistical Office confirm this. In 2025, the local courts recorded 24,064 corporate insolvency filings—the highest number in a decade.

This figure represents an increase of just over 10 percent compared to the previous year, with December’s rate—at 14 percent—even higher than that. The latest figures don’t look any better either. On the contrary. The Leibniz Institute for Economic Research in Halle (IWH) reports that 1,466 companies filed for bankruptcy in February of this year—that’s 58 percent more than in February of an average pre-crisis year (2016–2019).

The war in Iran, along with the resulting rise in energy prices, could further fuel this trend.

Major bankruptcies as a warning sign for entire supply chains

However, it is not just the overall figures that are cause for concern. A look at major insolvencies also offers no reason to let our guard down. If they rise, it’s a clear warning sign—because every major bankruptcy poses a risk to a large number of suppliers, whose very existence may also be threatened in the worst-case scenario. Allianz Trade refers to this as a “domino effect on supply chains.”

The credit insurer presents the figures for 2025 in a recent report:

• Worldwide, major insolvencies reached a new record high of 475 cases (+1% from 469 cases in 2024)
• Germany also recorded a new high of 94 cases (+8% from 87 cases in 2024)

In 2025, the service sector was particularly hard hit, recording 14 major insolvencies, including nine hospitals and nursing facilities alone. In addition, the automotive industry was significantly affected, with twelve cases, as were the chemical and metal industries, each with eleven insolvencies. The construction industry (ten cases) and the retail sector—which has been under pressure for years (nine cases)—also clearly demonstrate how widespread the economic challenges have become.

Credit Insurance: Why Companies Should Take Precautions Now

In light of this trend, it becomes clear how important it is for companies to protect themselves against payment defaults early on. Credit insurance not only protects against bad debt but also stabilizes a company’s liquidity and provides planning certainty in uncertain times. Especially with rising insolvency rates and increasing risks along supply chains, it can play a crucial role in preventing losses that threaten a company’s very existence.

GFL—Gesellschaften für Liquidität—helps companies find suitable credit insurance solutions and integrate them seamlessly into their existing financing structures. Through their expertise and market knowledge, they help make risks transparent, develop customized coverage strategies, and strengthen financial stability in the long term.