Corporate bankruptcies in MV persistently escalate - Rising count of bankruptcies persists in MV
In 2024, business insolvencies in Mecklenburg-Vorpommern and Germany have seen a significant increase, a stark contrast to the decline observed in 2021. This trend is primarily attributed to the end of extensive government support measures during the pandemic, which had temporarily masked underlying financial difficulties.
During the height of the COVID-19 pandemic in 2020 and 2021, Germany implemented various state aid programs, including grants, loans, and insolvency suspension regulations. These measures prevented many businesses from declaring insolvency despite financial stress, resulting in a lower insolvency rate in 2021. However, as most support measures were phased out or expired, struggling companies faced their financial realities, leading to the current increase in insolvencies.
Additional factors contributing to the rise include ongoing cost pressures, such as inflation and increased energy prices, which strain businesses. Sectors such as travel agencies and shipbuilding have been particularly affected. For instance, one in eight travel agencies in Germany closed within the past year due to rising cost pressures and growing digital competition. The shipbuilding sector in Mecklenburg-Vorpommern, specifically, has a history of insolvencies, with MV Werften filing for insolvency in early 2025.
Cybersecurity issues have also been a concern across various sectors in Germany, potentially adding to business vulnerabilities. However, there is no direct link between these attacks and insolvencies stated in the search results.
Despite the increase in insolvencies, the number of jobs affected is relatively low due to the lack of large-scale insolvencies. In July 2023, the number of insolvencies of persons and capital companies in Germany increased by 19.2% compared to the previous year. Official figures show a record 21,812 cases of business insolvencies in 2023.
Experts attribute the low number of insolvencies in 2021 to state coronavirus aid. VID chairman Christoph Niering warns against attributing entrepreneurial misdevelopment to rising tariffs or high energy costs, as it delays or insufficiently addresses necessary restructuring measures.
The trend of increasing insolvency cases is not limited to Mecklenburg-Vorpommern but is also reflected nationwide. For 2024, the statistics show 273 insolvency proceedings in Mecklenburg-Vorpommern, which is 7.5% more than in 2023. Several economic agencies expect more business insolvencies in 2024 than in 2023. Preliminary nationwide data indicate a stronger increase in business insolvencies compared to Mecklenburg-Vorpommern.
The Association of German Insolvency Administrators and Trustees (VID) states that many companies are reacting too late to structural changes in their industries. Compared to the wave of insolvencies at the beginning of the 2000s, when there were more than 1,000 company insolvencies in Mecklenburg-Vorpommern each year, the current figures are relatively low.
In summary, the 2024 increase in insolvencies in Mecklenburg-Vorpommern and Germany largely reflects the end of coronavirus aid and insolvency moratoriums, exposing economic strains and structural challenges in certain industries rather than a new, isolated cause.
- The increase in insolvencies in EC countries such as Germany, in 2024, could potentially be linked to the transition from extended government support policies during the pandemic, affecting employment policies in various industries, particularly those under financial stress.
- With the surge in insolvencies in the finance sector, German businesses might need to revise their employment policies to adapt to the challenging financial climate, possibly influencing the overall employment scenario within the regions.
