Rising Insolvencies Hit German Businesses, Including Leading Natural Food Company

Naturkost Übelhör GmbH & Co. KG, a renowned natural food producer specializing in organic raw materials like chia seeds, has filed for insolvency, underscoring a worsening trend of business failures in Germany in 2025. Founded in 1987 and based in Friesenhofen, Baden-Württemberg, the firm grew into an international player with operations spanning Peru, Mexico, and the USA. However, financial difficulties have forced the Ravensburg District Court to open insolvency proceedings on October 15, appointing attorney Alexander Hubl as provisional administrator. The 38 jobs at Naturkost Übelhör are now at risk, with efforts underway to secure wages through insolvency compensation despite the need for pre-financing these payments.

This insolvency reflects broader economic pressures on German small and medium-sized enterprises, driven by high interest rates and restricted credit. Allianz Trade forecasts an 11% rise in insolvencies nationwide in 2025, reaching approximately 24,320 cases—nearly twice the global average. CEO Milo Bogaerts warns the trend will persist, projecting about 24,500 insolvencies in 2026, the highest in twelve years. While restructuring possibilities remain unclear, Naturkost Übelhör must manage perishable bio-raw material sales and ongoing contracts.

Concurrently, in the Minden-Lübbecke district, companies are hesitant to hire despite the first increase in apprenticeship applicants since 2013, illustrating wider labor market strains amid economic downturns. About 2,526 applicants remain without placements, signaling challenges for youth employment as businesses scale back recruitment amid financial uncertainty.

This situation highlights the structural difficulties confronting Germany’s economy, affecting both businesses and the labor market as the country faces a surge in insolvencies alongside cautious hiring practices.