German Companies Struggle as Insolvencies Rise

“I’ve been here for 39 years, and today is my last day of work. I never imagined this could happen,” says Bernd, a worker at a tool-making company in Laichingen. After 125 years, the company is closing its doors. The buisness shared a name with the town in the Baden-Württemberg region and was a source of local pride. “A few years ago, we had to turn down orders becuase we were too busy. Now, it’s all over,” Bernd adds, disheartened. He, like all 100 employees, must now find new work as the company has declared bankruptcy and cannot pay its debts.

Martin mucha, the insolvency administrator for the Laichingen company, explains, “We tried to save the company through bank loans and new investors, but it didn’t work.” He notes the dire situation in the Stuttgart region: “There are hundreds of insolvencies, thousands of unemployed. It’s incredible – just a few years ago, this was one of the richest and most productive areas in Germany and Europe.”

According to the German Chamber of Industry and Commerce (DIHK), what happened to the historic company in Laichingen has affected at least 22,000 businesses – small, medium, and large – across Germany in 2025. Everywhere, irrespective of location – east, west, north, or south – the economic and industrial crisis is hitting Germany hard. Creditreform, a leading business information agency, estimates even more companies are insolvent, totaling 23,900.