A new rise in the number of bankrupt companies

On Friday, the German Statistics Office announced a new rise in the number of bankrupt German companies in February, by 20.3 percent, compared to the previous year.

The government office said in a report from its headquarters in Wiesbaden that the competent German courts recorded last February the bankruptcy of 1,362 companies, which means a new rise in the phenomenon that began in August last year, indicating that the energy crisis is one of its most important causes.

The report added that the lenders are asking these companies for a total amount of 3.2 billion euros (3.5 billion dollars), indicating that most of these companies work in the construction sectors, with 237 companies, and trade with 234 companies.

It is noteworthy that the assistance provided by the German government in the past years to German companies due to the disruption of their business due to the consequences of the virus pandemic (Corona emerging – Covid 19) and the energy crisis prevented a wave of bankruptcy, but the cessation of this aid accelerated the bankruptcy of more companies.

Although the office does not yet describe this rise as a “wave of bankruptcy”, observers warn of an increase in the number of companies declaring bankruptcy, especially companies and factories that rely heavily on energy materials, whose prices have increased significantly due to the interruption of Russian energy materials due to the consequences Russian-Ukrainian war.