The number of corporate insolvencies in Bavaria has increased significantly over the past year. As reported by the State Office for Statistics on Monday, in 1994 companies applied to the Bavarian district courts to open insolvency proceedings – 8.4 percent more than in the previous year. Industrial companies recorded the strongest increase (21.4 percent).
14,106 employees were affected by the insolvency of their employer – an increase of 9.9 percent. The probable claims of the creditors rose by a third to 2.55 billion euros. Nationwide, the trend towards more company bankruptcies had solidified towards the end of the year.
High energy prices, record inflation and consumers’ reluctance to spend have forced more companies to go out of business. According to the insolvency researchers at the Leibniz Institute for Economic Research Halle (IWH), the current year started with low insolvency figures. But the number of employees affected is well above the long-term average. They expect more new insolvency proceedings in the coming months.
High wage agreements and rising interest rates increasingly weighed on company balance sheets. Consumer bankruptcies in Bavaria fell last year. “In 2022, 5,618 consumers will file for bankruptcy, which corresponds to a decrease of 20.9 percent,” said the state office in Fürth.