The Corona financial injections of the federal government seem to allow many endangered enterprises to rebuild their strength for the last time. This is because the number of bankruptcies is currently still declining compared to the previous year. The number of insolvencies fell by 22 percent between January and July 2020. In total, more than 2,129 companies had to open proceedings. In July 2020 the decline was as much as 38 percent, equivalent to 259 corporate bankruptcies. The number of bankruptcies fell in almost all sectors, including retail (-26%) and wholesale (-29%), hotels and restaurants (-49%) and craft firms (-54%). However, this trend is likely to reverse in the fourth quarter of 2020 at the latest.
The number of enterprise births is showing a slight decline. From January to July, 26,455 new companies were entered in the commercial register, which corresponds to a decrease of one percent.
Read the study:
Bankruptcies & formations as of July 2020 (in German)