Germany is experiencing its highest rate of company bankruptcies since 2014, with Creditreform Economic Research projecting around 23,900 insolvencies by the end of 2025. The increase reflects an 8.3 percent rise compared with last year, continuing a trend that saw bankruptcies climb more than 22 percent in both 2022 and 2023.
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Furniture manufacturers, interior design firms, and smaller décor companies are among those hit hardest. Many medium-sized enterprises are heavily indebted and face challenges securing new loans, while micro-enterprises, often employing fewer than ten staff, account for over 80 percent of insolvencies. These businesses, which include boutique furniture studios and interior product suppliers, are particularly vulnerable to rising energy costs, high regulation, and operational overheads.
Bernd Bütow, CEO of Creditreform, warns that Germany's loss of competitiveness and ongoing economic weakness will continue to strain the sector. Patrik-Ludwig Hantzsch, head of Creditreform's economic research, adds that structural burdens are creating "massive pressure" on design and furnishing companies, threatening their survival.
High living costs and rising consumer debt further compound the problem, reducing domestic demand for luxury home goods and interior services. Creditreform estimates average claims at risk per insolvency to reach approximately two million euros, affecting banks, suppliers, and trade partners.
While planned government investments in infrastructure and defence may stimulate the broader economy in 2026, Creditreform calls for additional support measures, including electricity cost relief, to safeguard Germany's furniture and interior sector from further financial losses.
Source: www.de.euronews.com
