Bild's dramatic top headline: "A bankruptcy every 20 minutes": What's really behind the shocking new figures – Image: Xpert.Digital
Fact check on the wave of corporate bankruptcies: Is the dramatic Bild headline really true?
A company goes bankrupt every 20 minutes in Germany: Detailed analysis
"A German company goes bankrupt every 20 minutes" – this striking headline from the Bild newspaper recently caused a nationwide stir. But how much truth is there to this dramatic statistic? The fact is: Germany is currently experiencing an unprecedented wave of insolvencies. With over 24,000 company bankruptcies projected for 2025, the economy is at its highest level in over a decade. Whether construction, retail, automotive suppliers, or healthcare – the crisis cuts across all sectors and hits small and medium-sized enterprises (SMEs) just as hard as large corporations. The consequences are severe: billions in losses for creditors and hundreds of thousands of jobs at risk. But what are the real causes of this drastic increase? Are these simply catch-up effects from the coronavirus pandemic, or do the figures reflect a profound structural crisis in Germany's economy? In our comprehensive analysis, we examine the official data, fact-check the alarming headlines, and reveal what experts predict for Germany's economic future.
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What exactly did Bild newspaper report?
On March 13, 2026, the Bild newspaper ran the headline “New shock figures: A German company goes bankrupt every 20 minutes.” This followed a press release published the same day by the Federal Statistical Office, according to which German district courts registered a total of 24,064 corporate insolvencies in 2025. This represents an increase of 10.3 percent compared to the previous year. Volker Treier, chief analyst at the Association of German Chambers of Industry and Commerce (DIHK), was quoted as saying: “On average, a company in Germany had to file for insolvency every 20 minutes.”
Is the calculation “every 20 minutes” correct?
The calculation can be mathematically verified. A year has 525,600 minutes (365 days times 24 hours times 60 minutes). Dividing this by 24,064 insolvencies yields a statistical value of approximately 21.8 minutes per insolvency. Using Creditreform's figure of 23,900 insolvencies, this results in approximately 22 minutes. The statement "every 20 minutes" is therefore a slight rounding up, but essentially accurate. A more precise statement would be "approximately every 22 minutes," but the discrepancy is journalistically acceptable and does not alter the fundamental message. Volker Treier deliberately formulated the figure as an average, which is methodologically correct.
Where do the official figures come from?
The central source is the Federal Statistical Office (Destatis) in Wiesbaden. Its press release of March 13, 2026, cites the official figure of 24,064 corporate insolvencies filed for the entire year 2025. It should be noted that insolvency applications are only included in the statistics after the insolvency court's initial decision; the actual filing date is often about three months prior. In addition, the credit agency Creditreform publishes its own analyses. As early as December 2025, it had projected approximately 23,900 insolvencies for the entire year, representing an increase of 8.3 percent. The Leibniz Institute for Economic Research Halle (IWH), using a more specific methodology and counting only partnerships and corporations, arrived at 17,604 cases, the highest figure in 20 years.
Why are there different insolvency figures?
The discrepancies between the three sources are due to differing data collection methods and definitions. The Federal Statistical Office counts all corporate insolvencies filed with the local courts, including sole proprietorships and freelancers. Creditreform uses its own data sources and projections and arrives at similar figures. The IWH, on the other hand, only records partnerships and corporations and excludes sole proprietorships, which is why their number is significantly lower. For the public debate and the Bild newspaper's headline, the Destatis figure of 24,064 is decisive, as it represents the most comprehensive and officially binding statistic.
How has the insolvency situation developed in recent years?
The number of insolvencies in Germany has shown a continuous and accelerating increase since 2022. In 2023, the number of corporate insolvencies rose by 22.1 percent compared to the previous year, followed by a further increase of 22.4 percent in 2024. In 2025, the increase was 10.3 percent, meaning the rise slowed but remained at a high level. For historical comparison: In 2014, the number of corporate insolvencies stood at 24,085, which at the time was considered a record low since the introduction of the Insolvency Code in 1999. Germany has thus returned from a historic low within a decade to a level last seen in the economically challenging years before 2014. The IWH notes that the insolvency figures in 2025 were even around five percent higher than during the global financial crisis of 2009.
Which industries are most affected?
The wave of insolvencies is hitting the German economy hard, but some sectors stand out in particular. Based on 10,000 companies, the transportation and warehousing sector recorded the highest insolvency rate with 12.3 cases per 10,000 companies, followed by the hospitality industry with 10.5 and the construction industry with 8.5 insolvencies per 10,000 companies. According to the Halle Institute for Economic Research (IWH), around 62,000 jobs in the manufacturing sector were affected by insolvencies, more than in any other sector. The crisis was particularly noticeable in the healthcare and nursing sector, where several large institutions, such as the German Red Cross Hospital Group, the Erzgebirge Clinic, and Argentum Pflege Holding, had to file for insolvency. In the automotive sector, suppliers such as Gerhardi Kunststofftechnik and VOIT Automotive were among those affected, while in the retail sector, companies like Hammer Fachmärkte, KODi, and Polo Motorrad were impacted.
What is the situation regarding major bankruptcies?
The year 2025 saw a record high in large-scale insolvencies. According to a study by the credit insurer Allianz Trade, 94 German companies with annual revenues of at least €50 million filed for insolvency, an increase of eight percent compared to the previous year and the highest figure since the data collection began in 2015. Worldwide, 475 large companies filed for insolvency, statistically speaking, one major bankruptcy every 18 hours. Germany accounted for one-fifth of all global large-scale insolvencies, highlighting the structural problems of the country. According to Falkensteg, a total of 471 companies with annual revenues exceeding €10 million filed for insolvency, an increase of approximately 25 percent compared to the previous year. Since 2021, large-scale insolvencies have thus almost tripled.
What damage is caused by the wave of bankruptcies?
The financial and social consequences are substantial. Creditreform estimates the total losses for creditors in 2025 at around €57 billion, almost on par with the previous year's figure of €59.1 billion. On average, the claims at risk of default amount to more than €2 million per insolvency case. An estimated 285,000 employees were directly affected by corporate insolvencies. Furthermore, the creditor base is broadly diversified: suppliers, banks, landlords, and public authorities are all affected. Indirect effects also include the loss of innovative capacity, the weakening of regional economic structures, and a potential domino effect on suppliers and business partners.
What are the main reasons for the increase in bankruptcies?
The causes are multifaceted and no longer solely cyclical. According to Patrik-Ludwig Hantzsch, head of Creditreform, many companies are heavily indebted, struggle to obtain new loans, and grapple with structural burdens such as energy prices and regulation. The German Chamber of Industry and Commerce (DIHK) identifies four key contributing factors: high labor costs, high energy costs, excessive bureaucracy, and a weak economy that has persisted for years. The aftereffects of the COVID-19 pandemic also play a role: During the pandemic, government aid and the suspension of the obligation to file for insolvency artificially kept many companies afloat. After these measures expired, the postponed insolvencies were finally filed. However, Steffen Müller, a researcher at the Halle Institute for Economic Research (IWH), emphasizes that the high figures can "no longer be explained by catch-up effects from the pandemic and interest rate policy," but rather "increasingly reflect the current economic challenges in Germany." In addition, American tariffs and intensified competition from China are putting further strain on the export-oriented German economy.
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The real crisis is only just beginning: Why bankruptcies are only the tip of the iceberg
Why is it hitting the middle class particularly hard?
Micro-enterprises with up to ten employees account for the largest share of insolvencies. In this segment, around 19,500 companies filed for insolvency, representing 81.6 percent of all cases. Small and medium-sized enterprises (SMEs) have fewer financial reserves to weather prolonged periods of hardship. The combination of increased energy costs, higher interest rates for refinancing, rising personnel costs, and growing bureaucracy is disproportionately affecting smaller businesses. Unlike large corporations, many cannot negotiate more favorable terms on the capital markets and are more dependent on bank loans, the conditions of which have deteriorated significantly since the interest rate turnaround. The German Chamber of Industry and Commerce (DIHK) warns of a domino effect, in which the insolvency of one company drags down clients, suppliers, and service providers, weakening entire regional value chains.
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Are private individuals also affected?
Yes, parallel to the wave of corporate insolvencies, the number of consumer insolvencies is also rising significantly. Creditreform reports an increase of 6.5 percent to around 76,300 cases for 2025, the highest level since 2016. The main cause is the increasing over-indebtedness of the population. Nationwide, 5.67 million citizens are currently considered over-indebted. High living costs, job cuts, and rising unemployment are pushing many households to their financial limits. The wave of corporate insolvencies and the increase in personal bankruptcies reinforce each other: Lost jobs lead to income losses for employees, which in turn weakens consumption and intensifies the downward economic spiral.
What does the outlook for 2026 look like?
The outlook is not encouraging. Creditreform assumes that insolvency figures will not stagnate or even decline in 2026. Allianz Trade forecasts a further increase of three percent to around 25,050 cases. Patrik-Ludwig Hantzsch of Creditreform emphasizes that additional structural measures are needed, such as relief from electricity costs. A small glimmer of hope comes from the planned billions in government investment in infrastructure and defense, which could boost economic growth in 2026. The Association of German Chambers of Industry and Commerce (DIHK) is calling for decisive action on reducing bureaucracy, lowering energy costs, and providing tax relief so that a turnaround in insolvency figures is even possible. Leading indicators from the Halle Institute for Economic Research (IWH) suggest that the first quarter of 2026 will also see high insolvency figures. DIHK analyst Volker Treier has already stated that the outlook for 2026 offers little hope for a turnaround.
Is the Bild headline therefore justified?
The core message of the Bild newspaper is essentially correct. The calculation "a company goes bankrupt every 20 minutes" is based on official figures from the Federal Statistical Office and is a quote from the DIHK's chief analyst. Mathematically, this equates to approximately 21.8 minutes for 24,064 insolvencies, making the phrase "every 20 minutes" a slight but common journalistic simplification. The characterization as "shocking figures" is quite appropriate given the three-year trend with cumulative increases of over 65 percent since 2022 and the highest level in eleven years. However, the sensationalized headline lacks context: Insolvencies do not necessarily mean the end of a company, as many proceedings result in restructuring or a sale. Furthermore, the insolvency rate, measured against the total number of over 3.4 million companies in Germany, is still statistically relatively low. However, the dramatic portrayal reflects the real economic burden, which is made tangible by 57 billion euros in damages and 285,000 affected employees.
How do the insolvency figures compare to those of previous decades?
A look at the long series of data from the Federal Statistical Office since the introduction of the Insolvency Code in 1999 yields a surprising result: Historically speaking, the current wave of insolvencies is by no means the worst. On the contrary, it is significantly below the peak levels of the early 2000s.
| Period | Corporate insolvencies per year | Classification |
|---|---|---|
| 1996 | 25.530 | Before the Insolvency Code, former Federal Republic of Germany |
| 1999 | 26.476 | Introduction of the new insolvency law |
| 2001 | 32.278 | Rise after dot-com crisis |
| 2002 | 37.579 | Another sharp increase |
| 2003 | 39.320 | Absolute record value, historic high |
| 2004 | 39.213 | Almost constant record level |
| 2005 | 36.843 | Beginning of the decline |
| 2009 | 32.687 | Financial crisis, renewed increase |
| 2010 | 31.998 | The financial crisis subsides |
| 2014 | approximately 24,000 | Long-term low, record low |
| 2019 | 18.749 | Lowest level in a long time |
| 2020 | 15.841 | Historic record low due to Corona suspension |
| 2021 | 13.993 | Lowest level ever, artificially suppressed |
| 2022 | 14.590 | Beginning of normalization |
| 2023 | 17.814 | A sharp increase of 22.1 percent |
| 2024 | 21.812 | Further increase of 22.4 percent |
| 2025 | 24.064 | Current value, highest level since 2014 |
Following the introduction of the new insolvency law in 1999, with 26,476 cases, the number rose to 32,278 in 2001 as a result of the dot-com crisis and reached an all-time high of 39,320 corporate insolvencies in 2003, a figure that remains the historical peak to this day. A further increase was recorded during the financial crisis of 2009, with 32,687 insolvencies. Subsequently, a decline set in, leading to a long-term low of approximately 24,000 cases in 2014 and continuing until 2019 with 18,749 insolvencies. A special situation arose during the COVID-19 pandemic, in which the figures were artificially suppressed by the suspension of the obligation to file for insolvency, reaching historical record lows in 2020 (15,841) and 2021 (13,993). Since 2022, a normalization began with 14,590 insolvencies, followed by sharp increases in 2023 by 22.1% to 17,814 and in 2024 by a further 22.4% to 21,812 cases. The current figure for 2025 is 24,064, which is the highest level since 2014.
Is the current insolvency situation therefore dramatic, increased, unchanged, or lower?
The answer depends on the reference period and is more nuanced than the headline suggests. Compared to the absolute peak of 39,320 corporate insolvencies in 2003, the current level of 24,064 cases is around 39 percent lower. The current number is also significantly lower than during the financial crisis of 2008/2009, when over 29,000 and almost 33,000 companies, respectively, filed for insolvency. Throughout the entire decade from 2000 to 2010, the number of annual corporate insolvencies was consistently higher than today's figure, in some cases by more than 60 percent.
However, the situation looks different when measured against pre-pandemic levels. Compared to the years 2015 to 2019, when insolvencies remained consistently below 20,000, the current 24,064 cases represent a significant increase. Compared to the artificially suppressed low of just 13,993 insolvencies in 2021, the figures have almost doubled. The sharp rise since 2022, with three consecutive years of significant growth rates of over 22, 22, and 10 percent, is alarming.
The correct assessment is therefore: The insolvency rate is elevated and the dynamics are worrying, but historically speaking, the situation is not dramatic in the sense of an all-time record. The number is at the same level as around 2014, which, however, was celebrated as a record low after years of decline. Nevertheless, experts like Steffen Müller from the Halle Institute for Economic Research (IWH) warn that the figures can no longer be explained by catch-up effects and that structural economic problems are now the real driving force. What makes the situation particularly critical is not just the absolute number, but the speed of the increase, the record-high rise in large-scale insolvencies, and the total damage of €57 billion, which is far above previous figures.
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How do experts assess the situation?
DIHK chief analyst Volker Treier called 2025 “an exceptionally weak year for Germany as a business location.” Steffen Müller, head of insolvency research at the Halle Institute for Economic Research (IWH), pointed out that insolvencies also represent a “necessary market correction,” “creating space for future-proof companies.” Creditreform CEO Patrik-Ludwig Hantzsch sees profound structural problems as the cause, not just cyclical fluctuations. Allianz Trade CEO Milo Bogaerts commented on the large-scale insolvencies, saying, “When things go wrong, they often go wrong hard.” The experts agree that without fundamental reforms to energy costs, bureaucracy, and the tax burden, no turnaround can be expected. The wave of insolvencies is therefore not a temporary phenomenon, but rather an expression of a profound economic crisis that calls Germany’s future viability into question.
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