# German-Austrian insolvency surge and industrial crisis > Live situation record from CLSTR: https://clstr.news/situations/european-pandemic-aid-repayment-crisis > Updated: 2026-09-09T14:09:29.000Z. Sources: 145. Developments: 26. The wave of corporate insolvencies in Germany and Austria has intensified through mid-2026. In Germany, the first half of the year saw approximately 12,900 bankruptcies, the highest volume since 2013. While May 2026 saw a slight 2.0 percent monthly decrease compared to the previous year, the total filings from January to May rose by nearly five percent to 10,546. New data indicates a rise in large-scale insolvencies in Germany, defined as companies with annual turnovers of at least 50 million euros. According to Allianz Trade, 33 such bankruptcies were recorded in the first half of the year, a 10 percent increase over the previous year. The automotive industry is the most heavily affected sector, followed by retail, mechanical engineering, and services. Milo Bogaerts, Allianz Trade head for Germany, Austria, and Switzerland, noted that the “negative trend is solidifying” and warned of “domino effects” across value chains. In North Rhine-Westphalia, insolvency filings in the first half of the year reached 3,428, a 7.5 percent increase from the previous year, marking the highest level since 2015. While the number of filings is rising, the scale of impact per company has shifted toward smaller firms; approximately 13,853 jobs were at risk, down from 21,274 in the same period last year. However, Wolfgang Dinglreiter, President of Gesamtmetall, warned that job losses within the German Mittelstand since 2019 may be irreversible, threatening long-term industrial competitiveness. In the retail sector, the liquidation of DIY chains Hellweg and BayWa Bau- & Gartenmärkte progressed in September 2026. Following insolvency proceedings opened in late August, Hellweg initiated liquidation sales at several Lower Saxony locations. While buyers have been secured for 17 BayWa markets, the Bad Hersfeld site remains without an investor and faces potential closure by late November. ## Claims - BMW will cut 8,000 jobs worldwide, focusing on administrative and R&D roles. (disputed by 5 sources) - Retail chain Depot announced a lay‑off of 330 employees and a reduction to 50 stores from roughly 500. (disputed by 5 sources) - In May 2026, corporate insolvencies in Germany fell by 2.0 percent compared to the previous year to 1,995 filings. (disputed by 5 sources) - Between January and May 2026, corporate insolvencies in Germany rose by nearly five percent to 10,546. (disputed by 5 sources) - The automotive sector contributes roughly 5 % of Germany's gross value added and 3 % of total employment. (corroborated by 5 sources) - Average labour cost per car in Germany is $3,307, versus $597 in China and $305 in Mexico. (corroborated by 5 sources) - Employment in the German automotive industry fell 6.2 % year‑on‑year, amounting to about 725 000 jobs excluding suppliers. (corroborated by 5 sources) - German automakers face weak demand in China and pressure from U.S. tariff measures. (corroborated by 5 sources) - German automakers plan to shift production to Eastern Europe and Mexico to reduce costs. (corroborated by 5 sources) ## Timeline ### 2026-09-09: German industry faces rising insolvencies and job losses Germany faces rising corporate insolvencies and significant job losses, with the Mittelstand losing over 340,000 jobs since 2019, threatening long-term industrial competitiveness. 2 sources. https://clstr.news/cluster/german-industry-faces-rising-insolvencies-and-job-losses ### 2026-09-08: Hellweg and BayWa hardware stores begin liquidation sales in Germany Hellweg and BayWa Bau & Garten have begun liquidation sales at various German locations as part of ongoing insolvency and restructuring proceedings. 3 sources. https://clstr.news/cluster/hellweg-and-baywa-hardware-stores-begin-liquidation-sales-in-germany ### 2026-09-04: Germany large-scale corporate insolvencies rise 10% Large-scale corporate insolvencies in Germany rose 10% in the first half of 2026, with the automotive industry being the most affected sector, according to Allianz Trade. 15 sources. https://clstr.news/cluster/germany-sees-rise-in-large-scale-corporate-insolvencies ### 2026-09-02: Hellweg and BayWa Bau- & Gartenmärkte enter liquidation DIY retailers Hellweg and BayWa Bau- & Gartenmärkte have entered liquidation. Obi plans to integrate some locations, while other branches face potential closure if new investors are not secured. 2 sources. https://clstr.news/cluster/hellweg-and-baywa-bau-gartenmrkte-enter-liquidation ### 2026-08-31: Hellweg DIY group faces mass closures amid insolvency The Hellweg and BayWa Bau & Garten DIY groups are facing mass closures and insolvency restructuring in Germany and Austria, with competitors Obi and Bauhaus acquiring some locations. 9 sources. https://clstr.news/cluster/hellweg-and-baywa-bau-und-gartenmrkte-file-for-insolvency ### 2026-08-26: German traditional businesses face wave of insolvencies Multiple traditional German companies, including sausage maker Halberstädter Konserven and furniture manufacturer Gruber Polstermöbel, face insolvency due to rising costs and economic pressure. 9 sources. https://clstr.news/cluster/halberstdter-konserven-gmbh-to-close-after-140-years ### 2026-08-19: German companies face insolvency and restructuring Multiple German businesses face insolvency or restructuring, including hardware chain Hellweg, developer Pandion AG, and discounter Mäc-Geiz, while Gartencenter Augsburg secures a takeover. 13 sources. https://clstr.news/cluster/oekogeno-cooperative-seeks-restructuring-amid-financial-crisis ### 2026-08-17: Germany faces surge in business closures and industrial decline Germany saw approximately 187,744 business closures in 2025, a 10% increase from 2024. Sectors like construction, hospitality, and healthcare are heavily impacted by economic and energy pressures. 8 sources. https://clstr.news/cluster/germany-reports-over-10500-insolvency-filings-in-early-2026 ### 2026-08-13: Germany faces high corporate insolvencies as business failures hit 2013 levels Germany faces a high level of corporate insolvencies, with 12,900 filings in H1 2026. While May saw a slight monthly dip, experts warn a trend reversal may not arrive until late 2027. 17 sources. https://clstr.news/cluster/germany-corporate-insolvencies-expected-to-rise-until-2027 ### 2026-08-07: Austria's corporate insolvencies dip in Q2 while Oberösterreich sees rise Austria's overall corporate insolvencies fell 3 % in Q2 2026, but Oberösterreich recorded a 4 % rise in company bankruptcies and a 15 % jump in private insolvencies amid ongoing economic pressure. 2 sources. https://clstr.news/cluster/austrias-corporate-insolvencies-dip-in-q2-while-obersterreich-sees-rise ### 2026-07-31: BMW announces 8,000 job cuts worldwide amid German auto industry crisis BMW will cut 8,000 jobs worldwide, mainly admin and R&D staff, as German auto industry faces a crisis with weak Chinese demand and high costs. 26 sources. https://clstr.news/cluster/german-auto-industry-faces-deep-crisis-amid-emissions-trading-reform ### 2026-07-25: Nordhessen corporate insolvencies drop while Germany hits record high Nordhessen saw a 29 % drop in corporate insolvencies in early 2026, down to 103 cases, while Germany's total rose to a record 12,900. 2 sources. https://clstr.news/cluster/nordhessen-corporate-insolvencies-drop-while-germany-hits-record-high ### 2026-07-23: Germany faces record corporate bankruptcies and massive job cuts Germany's corporate bankruptcies surged 80% in June, the highest in two decades, prompting up to 100,000 job cuts at Volkswagen and similar layoffs across the auto and industrial sectors, while new firms rise 7 sources. https://clstr.news/cluster/germany-faces-record-corporate-bankruptcies-and-massive-job-losses ### 2026-07-14: Poland and Germany face rising corporate bankruptcies in early 2026 Poland’s insolvencies stayed steady while Germany recorded a 4,900‑firm bankruptcy surge in Q2 2026, with transport, logistics, hospitality and photovoltaic sectors hit hard. 6 sources. https://clstr.news/cluster/poland-and-germany-face-rising-corporate-bankruptcies-in-early-2026 ### 2026-07-10: Germany records highest number of company insolvencies in 21 years German company insolvencies hit 4,996 in Q2 2026 – a 21‑year high – impacting ~45,500 jobs; the industrial sector loses about 15,000 jobs per month. 14 sources. https://clstr.news/cluster/germany-records-record-corporate-insolvencies-in-q2-2026 ### 2026-07-08: Germany sees 21‑year high in corporate insolvencies in Q2 2026 Germany recorded 4,996 corporate insolvencies in Q2 2026 – the highest since 2005 – with a 7 % rise in April and sectors like transport, hospitality and construction hardest hit. 15 sources. https://clstr.news/cluster/germany-reports-rising-corporate-insolvencies-and-falling-rescue-rates ### 2026-06-30: German corporate insolvencies rise 5% in first half of 2026 German corporate insolvencies hit ~5,940 in H1 2026, up 5 % YoY, while consumer cases stayed flat at ~53,850; analysts cite weak demand, high costs and geopolitical uncertainty. 6 sources. https://clstr.news/cluster/german-corporate-insolvencies-rise-5-in-first-half-of-2026 ### 2026-06-26: Insolvent German packaging firms Forewood and Durotherm acquired Sensoplast bought Forewood's assets and Swissplast acquired Durotherm's German operations, preserving jobs and continuity in the German packaging industry after both firms entered insolvency. 2 sources. https://clstr.news/cluster/insolvent-german-packaging-firms-forewood-and-durotherm-acquired ### 2026-06-23: German corporate insolvencies rise to highest level since 2013 German corporate insolvencies are set to hit 12,900 in early 2026, a 6 % rise and the highest since 2013, driven by high energy costs and the Middle‑East conflict, with recovery unlikely before 2027. 2 sources. https://clstr.news/cluster/german-corporate-insolvencies-rise-to-highest-level-since-2013 ### 2026-06-23: German firms An Wa Transporte and Frischfaser Karton file for insolvency Two German firms—logistics provider An Wa Transporte and cardboard maker Frischfaser Karton—entered insolvency in June 2026, with court‑appointed administrators overseeing creditor claims and asset protection. 4 sources. https://clstr.news/cluster/german-firms-an-wa-transporte-and-frischfaser-karton-file-for-insolvency ### 2026-06-20: Austria to reclaim unlawfully granted COVID‑19 subsidies from businesses Austria's Supreme Court says COVID‑19 aid over €2.3 million per corporate group is illegal, ordering repayment and threatening company solvency. 3 sources. https://clstr.news/cluster/austria-to-reclaim-unlawfully-granted-covid19-subsidies-from-businesses ### 2026-06-18: Austria sees surge in corporate bankruptcies and drop in global competitiveness Austria recorded 3,401 corporate bankruptcies in early 2026 (~19 daily) and slipped to 29th in the 2026 IMD World Competitiveness ranking, reflecting deepening economic challenges. 4 sources. https://clstr.news/cluster/austria-sees-surge-in-corporate-bankruptcies-and-drop-in-global-competitiveness ### 2026-06-12: Germany sees surge in corporate and consumer insolvencies in March 2026 Germany recorded 2,308 corporate insolvencies in March 2026 (+15.8% YoY) and 7,462 consumer filings (+18.9%). Q1 filings rose 6.5% for firms and 6% for consumers, with creditor claims dropping to €9.3 bn. 4 sources. https://clstr.news/cluster/germany-sees-158-rise-in-company-insolvencies-in-march-2026 ### 2026-06-08: German firms see surge in provisional insolvency proceedings German courts named dozens of firms under provisional insolvency in late May‑early June 2026, while overall insolvency filings fell 15% in May to 1,518, with transport firms hit hard by fuel price spikes. 3 sources. https://clstr.news/cluster/german-firms-see-surge-in-provisional-insolvency-proceedings ### 2026-06-05: Austria Supreme Court orders COVID‑19 aid repayments to firms Austria's Supreme Court ruled COVID‑19 subsidies breached EU rules, ordering firms to repay illegal aid, sparking worries of insolvencies and a multimillion‑euro recovery for the state. 2 sources. https://clstr.news/cluster/austria-supreme-court-orders-covid19-aid-repayments-to-firms ### 2026-06-05: European firms face insolvency wave as courts order COVID aid repayments Austrian courts demand COVID aid repayments, sparking insolvency fears, while German experts warn a similar wave of bankruptcies as aid is reclaimed, threatening jobs in both countries. 4 sources. https://clstr.news/cluster/european-firms-face-insolvency-wave-as-courts-order-covid-aid-repayments --- Cite as: German-Austrian insolvency surge and industrial crisis. CLSTR, https://clstr.news/situations/european-pandemic-aid-repayment-crisis