German corporate insolvencies reach 13-year high of 12,812 in first half of 2026

Rising corporate filings across key sectors

German district courts registered 12,812 corporate insolvency applications during the first six months of 2026, an increase of 6.7% compared to the same period in 2025, according to the Federal Statistical Office (Destatis). The half-year figure represents the highest level since the first half of 2013, when courts recorded 13,253 corporate insolvencies. In June 2026 alone, insolvency applications rose 15.8% year-on-year to 2,266 cases, the highest monthly figure recorded since 2014.

The insolvency rate across the German economy reached 36.2 cases per 10,000 companies. The transport and logistics sector registered the highest concentration of insolvencies at 71.6 cases per 10,000 businesses, followed by the hospitality sector with 59.6 cases and the construction industry with 53.4 cases per 10,000 enterprises.

Creditor claims and consumer insolvencies

Despite the higher volume of company failures, financial exposure contracted during the period. Total claims reported by creditors in corporate insolvency proceedings fell to approximately 18.5 billion euros in the first half of 2026, down from 28.2 billion euros in the first half of 2025. Destatis attributed this decrease to fewer insolvencies involving large enterprises.

Consumer insolvencies also increased across Germany during the first six months of 2026, rising 2.4% year-on-year to 38,932 cases. In June 2026, consumer insolvencies climbed 5.1% compared to the prior year to reach 6,839 proceedings.

Industry assessment and structural shifts

Business groups cited rising operating expenses, sluggish demand, and regulatory burdens as key drivers behind the increase. Marc Evers, small and medium-sized enterprise expert at the German Chamber of Commerce and Industry (DIHK), called for swift political measures.

The long sluggish domestic economy, high and still rising costs for energy and labor, as well as excessive bureaucracy take the air out of many companies.

Insolvency professionals offered a different perspective on the figures, noting that current volumes remain below earlier peaks such as 2004, when 39,213 insolvencies occurred, and 2009, which saw 32,687 cases. Jutta Rüdlin, board member of the Association of Insolvency Administrators (VID), rejected characterizing the trend as a collapse.

The numbers are rising, but they are rising from a historically low level. What we are seeing is less a wave than an ongoing structural change that affects different sectors very differently.

Data from the Halle Institute for Economic Research (IWH) showed 1,525 insolvencies among corporations and partnerships in August 2026, down 10% from July but 9% higher than August 2025. In the top 10% largest insolvent companies in August, more than 16,000 employees were affected, an increase of 21% compared to July.

Divergence with business formations and growth

Alongside rising insolvencies, business formation activity expanded during the first half of the year. The German Startup Association registered 3,053 newly founded startups between January and June 2026, representing an increase of 52% from the preceding half-year. Broad commercial registrations compiled by the Institut für Mittelstandsforschung (IfM) reached approximately 143,000 new commercial startups, compared to 127,000 closures.

The rise in insolvencies coincided with upward revisions to German economic projections. Economic research institutes raised their full-year 2026 gross domestic product growth forecasts to between 1.2% and 1.4%, compared to the German federal government projection of 0.5%.