Major German Firms BayWa and Spedition Betz Face Restructuring and Insolvency in 2026

Two major German companies are confronting severe financial and operational challenges in 2026, highlighting the pressures faced by the country's traditional firms amid rising costs and market difficulties.

BayWa, a Munich-based conglomerate active since 1923 in sectors such as agriculture, heating, mobility, technology, and construction materials, announced the closure of several locations in Bavaria. The company’s revenue dropped significantly from €3.6 billion in Q1 2025 to €2.3 billion in Q1 2026, a decline partly due to the sale of its Cefetera Group B.V. subsidiary but also driven by adverse external factors like challenging weather, a weak construction market, and geopolitical tensions including the war in Iran. These factors have increased the costs of diesel, fertilizers, and plastics, pressuring BayWa’s business. Specifically, BayWa plans to shut its Hersbruck site by September 30, 2026, with employees relocating to nearby branches. Closure of the Regen site in the construction materials division is also planned, though no date is set. To manage the crisis, BayWa’s board has engaged in a Standstill agreement with its banks until autumn 2026 to revise its restructuring plan.

Meanwhile, Spedition Betz International, a longstanding logistics company based in Undingen, has filed for insolvency, putting 140 jobs at risk. Once employing 8,000 workers and achieving revenues of €1 billion, Betz entered preliminary insolvency proceedings on April 7, with formal proceedings beginning June 1. Despite maintaining a good order book previously, the company suffered from increased competition, narrow profit margins, and soaring logistics costs, especially diesel prices elevated by geopolitical conflict in Iran. Experts note that a 10% rise in diesel prices can raise total logistics costs by 3%, with current hikes nearing a 9% increase. The managing director expressed deep regret over the impact on employees and partners, while underlining efforts to stabilize operations and seek investment.

These developments at BayWa and Betz reflect broader trends in the German economy, which has seen insolvency rates reach a 20-year high in early 2026 as companies grapple with cost pressures and market uncertainties arising from global geopolitical tensions and economic disruptions.