Restructurings under self-administration are at an all-time high
The risk of insolvency increased across most economic sectors in 2024, but the highest rate was in the transport and logistics sector: 14 out of 1,000 VAT-liable companies filed for insolvency. In the construction industry, other business services, and the hospitality sector, the figure was 10 out of 1,000 companies. Even in sectors that faced little insolvency risk five years ago, such as healthcare and social services, real estate, and information and communication, more insolvency applications were filed in 2024 than in 2019.
Still significantly more business closures than insolvencies
Most insolvency applications were submitted by companies in the legal forms of limited liability companies (GmbH) and sole proprietorships. However, in 2024, the number of insolvency applications from companies in the legal form of GmbH & Co. Limited Partnership, which is widespread in the Mittelstand sector, also increased.
Overall, despite a 22.4% increase to 21,800 insolvencies, they still represent only a small proportion of all company closures (270,000). Moreover, not all insolvency applications result in the closure of the affected company. For example, the number of approved self-administered insolvency proceedings rose to 470 in 2024. In comparison, there were 345 approved applications in 2023. This restructuring-focused process has reached a new high since its introduction 25 years ago. However, it is primarily used by larger companies.
