Germany sees 188,000 business closures in 2025

A joint study by Creditreform and the Leibniz Centre for European Economic Research (ZEW) reveals that approximately 188,000 companies closed in Germany in 2025, marking a ten percent increase from the previous year. This represents the highest number of closures in roughly two decades.

Notably, only about 13.4 percent of these closures were due to insolvency. The majority of business exits were driven by voluntary closures, often due to a lack of successors or owners retiring. Demographic shifts play a significant role, with nearly one-third of voluntary closures attributed to age-related reasons. In owner-managed family businesses, 29 percent of voluntary closures involved owners aged 65 or older.

Sector-specific data shows varying impacts. The hospitality industry saw a sharp 15 percent increase in closures, while the construction sector rose by 12 percent. Medical practices experienced a 23 percent increase in closures. In contrast, the retail sector proved to be one of the most stable industries, showing the lowest proportional rate of closures among all studied sectors.