According to the Leibniz Institute for Economic Research Halle (IWH), the number of bankruptcies filed by sole proprietorships and corporate entities in Germany rose again in April, surpassing the record figures set in March. The institute warned that there is currently no indication of an improvement in the coming months.
IWH data shows that 1,776 businesses entered insolvency in April. This figure represents a 3% increase compared to March, and a significantly higher rate than April of 2025. Critically, when compared to the average April of the years 2016 through 2019-the period preceding the COVID-19 pandemic-the current count is 82% higher.
This April figure is the highest level of insolvency recorded since June 2005, when the number stood at 1,859. Steffen Müller, head of the IWH’s Insolvency Research department, suggests that, based on his figures, very high insolvency numbers are expected through at least July.
Sectorally, the highest record gains were observed in the hotel and gastronomy sectors, as well as in real estate and housing. While retail trade and services nearly hit new record highs, the overall pattern of growth was high. Regional breakdowns revealed record numbers in Berlin and Bavaria, with the IWH attributing the sharp increase in Berlin to an unusually high volume of hotel insolvencies.
The impact on employment was substantial: the top 10% of insolvent companies accounted for nearly 20,000 jobs in April. This figure is significantly higher than the previous month (an increase of 43%) and the same time last year (an increase of 39%). Furthermore, it represents more than double the average April employment impact recorded during the pre-pandemic years of 2016 to 2019. Nevertheless, the IWH cautioned that this elevated job loss count was partly due to two major retail insolvencies alone, which affected close to 6,000 jobs.
