New Wave of Insolvencies Hits Over 50 German Mid-Sized Companies Amidst Risk Management Challenges
Germany faces a fresh wave of insolvencies among mid-sized companies across sectors amid challenges in early crisis detection and risk management under StaRUG regulations.
- • 53 new insolvency cases reported across Germany on October 23, 2025, affecting multiple sectors and major cities.
- • The economic stress includes geopolitical tensions, supply chain fragility, and energy price volatility impacting SMEs.
- • StaRUG law imposes obligations for early risk detection but many companies still identify crises too late.
- • Experts advocate for advanced stochastic simulations for effective risk aggregation and crisis prevention.
- • Executives face increasing personal liability if legal risk detection requirements are neglected.
Key details
On October 23, 2025, Germany witnessed a significant surge in corporate insolvencies with 53 new cases reported across multiple sectors, signaling a deepening crisis among mid-sized businesses. According to diebewertung.de, the affected companies span diverse industries including events, care, construction, logistics, and industrial manufacturing, with major urban centers such as Berlin, Munich, Frankfurt, Cologne, and Dresden being particularly impacted. Notable insolvencies include Baumarbeiten Kellermann UG in Berlin, A-EINS GmbH in Munich, as well as firms like 110Intensivpflege GmbH in the care sector and Access Tower GmbH in construction, illustrating the breadth of economic pressure facing German SMEs (ID:114958).
This surge is unfolding against a backdrop of ongoing economic stress characterized by geopolitical tensions, unreliable supply chains, volatile energy prices, and stringent regulatory requirements. Since the 2021 implementation of the Unternehmensstabilisierungs- und -restrukturierungsgesetz (StaRUG), companies in Germany are legally required to proactively monitor and quantify risks that could threaten their existence. However, many enterprises still detect crises too late. Experts cited by risknet.de argue that conventional qualitative risk assessments are insufficient. Instead, they advocate for sophisticated quantitative risk aggregation methods utilizing stochastic simulations—such as Monte Carlo techniques—that can reveal complex risk combinations and early warning signals, enabling companies to anticipate insolvency triggers and act accordingly (ID:114948).
The case of BayWa AG exemplifies pitfalls of neglecting thorough risk management. Despite generating over a billion euros in revenue, BayWa's earnings before interest and taxes dropped 85%, and operational cash flow became negative, partly due to flawed risk detection methods that failed to account for combined risks like rising interest rates, price fluctuations, and project delays. Critics also highlight that recent auditing standards (IDW ES 16) do not sufficiently mandate these advanced simulations, potentially weakening early crisis identification efforts.
This legal and methodological gap underscores heightened responsibilities for company executives who might face personal liability if early crisis signals are missed. The ongoing wave of insolvencies among German mid-sized firms reflects not only economic challenges but also the urgent need for more proactive and scientifically robust risk management frameworks to preserve the SME sector's stability.
As of now, the insolvency trend continues to threaten the landscape of Germany’s mid-sized enterprises, especially concentrated in urban areas, with risk experts pressing for a transformation of crisis detection from minimal compliance to strategic resilience building.