Germany business closures reach 188,000 in 2025

Approximately 188,000 companies closed in Germany in 2025, marking a 10% increase compared to the previous year and reaching the highest level in nearly two decades. This data comes from a joint study by Creditreform and the Leibniz Centre for European Economic Research (ZEW).

Notably, only about 13% of these closures were due to insolvency. In nearly nine out of ten cases, the business ceased operations without a formal insolvency proceeding. The study found that companies closing in 2024 and 2025 had, on average, better credit ratings than those that closed in previous years.

Researchers noted that many closures were driven by economic decisions or a lack of successors rather than immediate financial distress. Factors such as owners retiring or personal reasons also played significant roles. While the number of closures is high, the study suggests this does not necessarily represent a total loss of economic output, as new businesses are being formed and existing companies often absorb employees, customers, and orders from those that close.