Allianz Trade Study: Major bankruptcies in Germany are back – forward
especially in clinics and fashion retailers
Hamburg (ots) –
– Major bankruptcies in Germany are on course for a record year in 2020 (highest level
since 2016)
– Especially many large textile companies and fashion retailers as well as clinics
affected
– Gastronomy shows weakness even before VAT increase: At
Overall insolvencies of all company sizes recorded the strongest increase
Insolvency cases in the retail, hospitality and construction industries
– “Oh, you sad one”: Christmas presents in danger; less toys, less
Christmas sweaters due to consumer reluctance to purchase
The major bankruptcies[1] in Germany are back: the number of major bankruptcies
in Germany is heading towards that with 45 cases in the first nine months of 2023
Record level from 2020. For comparison: in the same period in 2022
With 26 major bankruptcies, there were a good third fewer, compared to just 2021
17. This is an increase of 73% compared to the previous year or 165% in
Comparison to 2021. 2020 marked the highest level of bankruptcies since 2016
with 58 major insolvencies in the year as a whole and 44 cases in the comparable period
in the first new months. This is the conclusion reached by the current analysis
world’s leading credit insurer Allianz Trade.
“The major bankruptcies have returned this year and are on track
the highest level from 2020,” says Maxime Lemerle, head of insolvency research at
AllianzTrade. “There have been a particularly large number of major bankruptcies over the course of the year so far
in (fashion) retail, hospitals and mechanical engineering.”
Hanging by a thread: fashion companies and clinics
A total of twelve large textile companies and fashion retailers slipped up
September 2023 went bankrupt as well as eight service companies, including
six clinics. This fits with the situation report from the German Hospital Institute
(DKI), after two thirds of German clinics report their current financial situation
describe as bad or very bad in the medium-sized clinics
this even more so. In mechanical engineering (5 cases) as well as in metal (4) and the
There were also some major bankruptcies in the construction industry (3).
All company sizes: Strongest increase in bankruptcies in retail, hospitality and
Construction industry
This is the trend in nationwide bankruptcies of all company sizes
very heterogeneous within the sectors. Year to date up to and including
August 2023, the construction industry recorded the most insolvency cases, followed by
Trade and companies in the service sector. The trade recorded this
the strongest increase in the number of cases compared to the same period last year,
But the hospitality industry was also showing weakness even before the VAT increase.
There has also been a significant increase in the construction industry so far in 2023
more cases than in the same period last year.
Christmas business in danger: reluctance to buy gifts, textiles and
toys
“This year there are likely to be significantly fewer presents under the Christmas tree
land,” says Milo Bogaerts, CEO of Allianz Trade in Germany, Austria
and Switzerland. “Food prices are lower despite the
Inflation rate remains high. Consumers therefore save on everything else
Spending: You go out less, buy less clothes – and
Christmas presents. In this weather situation the wind blows for many fashion and
Electronics retailers, some toy manufacturers and retailers as well
some restaurateurs are currently experiencing a cold autumn wind. This is just for this
The Christmas business is extremely important in industries so that you can start off with some winter fat
to go through the low-sales ‘pickle season’ at the beginning of the year.”
In the catering industry, the planned increase in the previously reduced
VAT sees further dark clouds on the horizon affecting the industry
poses further challenges.
“Many German companies are doing well even in these difficult times
set up and have the necessary buffers – but not all of them,”
says Bogaerts. “If shaky candidates then have loans, for example
have to repay or refinance, for example from the Corona period
tip it quickly.”
Nationwide bankruptcies: back to normality, pre-crisis level will not be until 2024
reached
According to Allianz estimates, insolvencies in Germany will begin in 2023
Trade expected to rise 22%. This is the strongest increase since
the European debt crisis – but coming from a low level. With it
Insolvency events are largely returning to normal. At the end of the year probably
Bankruptcies remain around 5% below pre-pandemic levels
2019 and this only after another increase of 9% in the coming year
exceed. However, major bankruptcies are normal
reality again.
Beware of the snowball: Significantly increasing insolvencies in important German companies
export markets
Bankruptcies are also picking up speed again worldwide, with an increase of 6%.
In Hungary (+149%), Poland (+68%) and in some of the most important German ones
Export markets – in the Netherlands (+59%), the USA (+47%), France (+36%)
– there is likely to be the largest increase in bankruptcies. Comes to this conclusion
the current insolvency study by the world’s leading credit insurer Allianz
Trade.
“The risk of payment defaults is increasing not only in Germany, but also with
the Netherlands, the USA and France in three of the most important ones
German export markets. German companies should therefore double down
Be vigilant for impending snowball effects and warning signs
Pay attention to buyers.”
[1] In this context, insolvent companies are considered major bankruptcies
whose annual turnover is above EUR 50 million
Further press information:
https://www.allianz-trade.de/presse/pressemitigungen.html
Allianz Trade is the global market leader in credit insurance and
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against fraud or political risks. Allianz Trade has more than 100
years of experience and offers its customers comprehensive financial services,
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Allianz tracks and analyzes via the company’s own monitoring system
Trade daily the insolvency development of more than 83 million small,
medium and multinational companies. In total they include
Expert analyzes markets accounting for 92% of global gross domestic product (GDP)
omitted.
With this expertise, Allianz Trade makes world trade safer and gives the
Over 70,000 customers worldwide have the necessary trust in their business and their
Pay. As a subsidiary of Allianz and with an AA rating of
Standard & Poor’s is Allianz Trade’s financially strong partner in the event of damage
the side of its customers.
The company, headquartered in Paris, is represented in over 50 countries
employs more than 5,500 people worldwide. Allianz generated revenue in 2022
Trade had a turnover of EUR 3.3 billion and insured worldwide
Business transactions worth EUR 1,057 billion.
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