Worrying trend spreads as major German bankruptcies rise, dragging down entire supply chains

Germany’s wave of major corporate bankruptcies is still growing, and the country’s economic recovery is arriving too late for many companies. The auto industry suffered the most in the first half of the year, with seven large insolvencies.

A study by credit insurer Allianz Trade recorded 33 major bankruptcies in Germany during the period, 10 percent more than a year earlier. The figure follows 94 major bankruptcies in all of 2025, the highest level since records began in 2015. There were 87 such cases in 2024 and 64 in 2023.

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There is no respite in 2026 either

“There is no respite in 2026 either,” said Milo Bogaerts, Allianz Trade’s head for Germany, Austria and Switzerland. He said last year’s negative trend had become more firmly established, showing that pressure to adapt remained intense across many sectors.

Large companies sit at the center of complex value chains, Bogaerts said. When a company of that size fails, suppliers, service providers and other business partners often come under pressure as well. Retail recorded five major bankruptcies in the first half, while mechanical engineering and services each recorded four.

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If a market player of this size falls, suppliers, service providers and other business partners often come under pressure

The combined annual revenue of the insolvent large companies rose 3 percent to 4.5 billion euros. Average revenue per bankruptcy fell almost 7 percent to about 137 million euros, suggesting that somewhat smaller companies within the category were also affected. Allianz cited high investment and energy costs and weak pricing power as contributing pressures. Bogaerts expects the number of major bankruptcies to remain high for the rest of the year, particularly in sectors with heavy investment and energy costs.

The trend is global. Allianz recorded 247 major bankruptcies worldwide in the first half, 13 percent more than a year earlier, with retail, services and construction recording the most cases. Western Europe accounted for more than 60 percent of the recorded total. The article also reported that Volkswagen had agreed with unions to eliminate another 50,000 jobs, bringing the total number of planned job losses to 100,000. The group said aligning its workforce with economic realities was essential.

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The key is to systematically align workforce levels with economic realities