Even if it has become somewhat calmer in the German textile and clothing industry after the last major bankruptcy- Sinry Weber, Peek & Cloppenburg, Esprit, Görtz, Görtz, it is not yet out of the tailor.
A total of 46 bankruptcy proceedings were opened in the German textile and clothing industry in 2024, and the trend increases how credit insurance Allianz Trade emphasized in a study at the beginning of the year.
“There are currently no significant large bankruptcies in the industry, but the overall damage development is increasing in the sector,” confirms Risk Services Manger Jens Stobbe from the international credit insurer Atradius.
In the middle of May this year, the bankruptcies rose by 3.7 percent – more than in the comparison period of the previous year. In the previous year, gross production turnover with textiles, leather and clothing, according to Oxford Economics in Germany, decreased by 4.2 percent to EUR 27.1 billion, and decreasing.
This year, this number should decrease to just over 26 billion euros or around 25 billion euros in 2026. In the euro zone, the situation is similar: During the sales of the industry last year, it will only be around 130 billion euros next year.
No all -clear in the face of the challenges
In addition, there are increased personnel and energy costs as well as massively increased construction and renovation costs for retail. The persistent reluctance of consumers: In view of the economic uncertainty, the inside ensures rather weak demand. For traditional retail models, the trend towards online trading and second-hand clothing is also challenging.
Even though sales in the clothing industry seems to be stable at around 7 billion euros, the industry has to struggle with headwind: on the one hand, it is under pressure through new EU regulations to implement more sustainable practices, on the other hand, the US customs policy towards Asian countries is causing uncertainty. There could be increasingly targeting European markets there and further tightening the competition.
Based on structural changes, weak demand and political uncertainties, especially through possible US tariffs, the IFO Institute for 2025 forecast no economic growth.
“While the industry could benefit from sustainability, technical innovations and the growing market for circulatory fashion as a counter -model to Fast Fashion, it must also deal with competitive challenges, regulatory requirements and economic uncertainties,” summarizes Stobbe.