The causes of insolvency can be many and varied. Companies around the world are confronted with insolvency every year.
Below you will find an introduction to the topic and the situation in Germany in 2024.
The most important in a nutshell
- In Germany, there were a total of 16,222 corporate insolvencies in the first three quarters of 2024 (+22.2 percent).
- In 2016 (1st to 3rd quarter), there were recently more corporate insolvencies (16,480)
- Frequency of insolvencies was highest in the transport and warehousing sector
- Consumer insolvencies also increased compared to 2013
- Notable bankruptcies: Galeria Kaufhof, FTI and Tupperware went bankrupt in 2024
Definition of insolvency
Insolvency is defined as the inability of a company to pay its debts. This can occur if:
- A company can no longer meet its payments,
- there is over-indebtedness or the liabilities are higher than the assets,
- the debtor is unable to meet his payment obligations on time.
According to the Federal Statistical Office, a total of 16,222 companies went bankrupt in the Federal Republic of Germany from the 1st to 3rd quarter of 2024, 22.2% more than in the same period in 2023. The last time there were more corporate insolvencies was in the first three quarters of 2016. Creditors claimed a total of around 45.6 billion euros from the insolvencies, compared to claims of around 21.1 billion euros in the previous year.
Based on a total of 10,000 companies, 47 companies in Germany went bankrupt in the first three quarters of 2024. Most of the bankruptcies per 10,000 companies came from the transport and storage sector (91 cases), construction (72 cases), other business services (70 cases) and hospitality (64 cases).
Significant increase in major insolvencies
Even though the majority of corporate insolvencies affect so-called micro-enterprises with no more than ten employees (81.4 percent), it is noticeable that there has been an above-average increase in company bankruptcies among companies with more than 250 employees (+44.4 percent), as the industry portal Creditreform reports, referring to the year 2024.
Spectacular company bankruptcies: Galeria Kaufhof, FTI and Tupperware Germany
There were numerous corporate insolvencies in the Federal Republic of Germany in 2024. However, three companies in particular caused quite a stir: Galeria Kaufhof, FTI and Tupperware Germany.
Galeria Kaufhof
Galeria (formerly Galeria Karstadt Kaufhof) has been able to restart since August 2024. Initially, operations will continue at a total of 83 locations. The company employs around 12,000 people nationwide.
Karstadt is facing particular challenges as a result of the boom in online retailing.
FTI
In the summer of 2024, the bankruptcy of the travel group FTI caused quite a stir with debts totaling one billion euros. It is estimated that there are 350,000 creditors in total.
FTI had around 1,400 employees in this country, after which 50 percent are said to have lost their jobs.
Competitors such as TUI, DERTOUR and Alltours are likely to have profited from the FTI bankruptcy.
Tupperware Germany
Tupperware, a company known for its storage containers, also joins the list of prominent insolvencies in 2024.
The company was still able to profit during the coronavirus pandemic. However, with rising costs for staff, freight and raw materials and increasing competition, Tupperware was increasingly in trouble.
Spectacular insolvencies in Germany in 2024
Numerous companies from a wide range of sectors such as department stores, bags, cosmetics and travel had to file for insolvency in 2024. In addition to Galeria Kaufhof, the most prominent bankruptcies are likely to have included the travel group FTI and Tupperware Germany.
| Company | Month of insolvency | Industry |
| Galeria Kaufhof | January | Department store chain |
| Omega | January | Bags |
| The Body Shop | february | Cosmetics |
| Next.e.Go Mobile | March | Automobile |
| Eissmann Automotive | March | E-vehicle manufacturer |
| Huebauch | April | Chemistry |
| Esprit | May | Fashion |
| FTI | June | Travel |
| Nukem Technologies Engineering Services | July | Nuclear |
| Fosen shipyard | august | Shipyard |
| Tupperware Germany | november | Household articles |
Worth knowing: Consumer insolvencies also increased in 2024. Destatis reports a total of 53,409 consumer insolvencies from the 1st to 3rd quarter of 2024, which corresponds to an increase of 6.8 percent compared to the same period in the previous year.
According to Creditreform, in addition to the rising cost of living, higher interest rates for loans are also cited as reasons that are putting a heavy strain on household budgets. Last but not least, the loss of well-paid jobs is likely to have exacerbated the situation.
What do insolvencies mean for shareholders? Bankruptcy of Wirecard, Signature Bank and Lehman Brothers as a warning signal
Corporate insolvencies in the past should always be seen as a warning for investors. These show that, in the worst case, there is a risk of a total loss of the capital invested. Perhaps the most prominent example of an insolvency in the Federal Republic of Germany in the last decade was the payment processor Wirecard in the summer of 2020, after large-scale accounting fraud became known. Tens of thousands of Wirecard shareholders are still waiting for compensation in the insolvency proceedings.
Signature Bank from the USA also attracted a great deal of attention in 2023. The background to its insolvency was the collapse of Silicon Valley Bank (SVB) after customers withdrew large sums of money.
As a result, authorities and investors around the world feared the risk of contagion to other banks and the global financial markets. However, the situation eased again thanks to a spectacular rescue operation by the US government.
Another example is the collapse of the investment bank Lehman Brothers in the USA in September 2008, which further exacerbated the global financial market crisis.
The above-mentioned insolvencies are a prime example of how these have the potential to bring entire sectors and the financial market into disrepute and put investor confidence to the test.
On the other hand, insolvencies can also lead to a clearing market situation, which can teach important lessons for the financial markets and also for investor protection.
How could insolvencies in Germany develop in 2025?
If Creditreform economic research has its way, the number of insolvencies could continue to rise in 2025. The peak figures from 2009 and 2010 could also come "within sight" again (<32,000 companies).
The development of the German economy, which grew only minimally in the third quarter of 2024, could possibly contribute to this. From July to September, gross domestic product (GDP) increased by just 0.1% compared to the previous quarter. Two negative quarters in a row means a "technical recession" in technical jargon.
Summary: Company bankruptcies in Germany have increased again - transportation and warehousing particularly affected
The situation regarding corporate insolvencies in the Federal Republic of Germany continued to worsen in the first three quarters of 2024 compared to the same period of the previous year. The last time there were more insolvencies in the same period was in 2016 (16,480). The transport and warehousing sectors, which are characterized by insolvencies, stand out in particular.
Consumer insolvencies have also increased compared to the previous year.
In addition to the Galeria Kaufhof department store chain, the bankruptcies of the travel group FTI and Tupperware Germany were among the most spectacular cases in Germany in 2025. The wave of insolvencies could also continue in 2025.
