Corporate multiple insolvencies highlight structural business risks

Multiple insolvencies among established companies highlight that legal proceedings alone do not resolve underlying business crises. While insolvency provides liquidity and time, it fails to address structural issues such as flawed business models, high costs, or poor market positioning if not accompanied by rigorous restructuring.

Several notable German entities have faced repeated insolvency proceedings. The Hamburg-based shoe retailer Görtz entered insolvency again last year following a 2023 procedure. The retail chain Depot has also entered insolvency for a second time, and reports suggest Galeria may face similar risks. Additionally, the football club KFC Uerdingen 05 recently underwent its fifth insolvency process in 20 years.

Experts note that a second insolvency often stems from unresolved economic deficits rather than a new crisis. Maintaining trust among creditors, customers, and suppliers becomes significantly more difficult during subsequent proceedings, as stakeholders demand proof that lessons were learned and structural changes were effectively implemented.