Rising Insolvency Rates Hit German Companies, Bio-Industry and Lippe Region in Focus

In 2025, insolvency rates among German companies are surging, with significant impacts noted across various sectors and regions. One high-profile case involves Naturkost Übelhör GmbH & Co. KG, a renowned natural food company based in Friesenhofen, Baden-Württemberg. Founded in 1987, the company, which specialized in organic raw materials such as chia seeds and operated the only chia seed cleaning facility in Europe, filed for bankruptcy following financial difficulties. The Ravensburg District Court opened insolvency proceedings on October 15, 2025, appointing attorney Alexander Hubl as the provisional insolvency administrator. With 38 employees facing job insecurity, the administrator is focusing on securing wages through insolvency payments and moving to sell perishable bio raw materials. The company’s future, including potential restructuring or closure, remains uncertain (Source 135906).

Broadly, insolvencies in Germany are rising sharply. According to a study by Allianz Trade, the number of corporate insolvencies is expected to increase by 11% in 2025, reaching approximately 24,320 cases—nearly double the global average. Allianz Trade’s CEO Milo Bogaerts highlighted that while the crisis might be nearing a turning point, the forecast for 2026 predicts an even higher peak of 24,500 insolvencies, the largest figure in twelve years (Source 135906).

Regionally, Lippe has experienced a 22% year-on-year increase in insolvency applications for the first half of 2025, with 50 companies filing at the Detmold District Court, exceeding the 17% average rise seen in North Rhine-Westphalia. Key sectors affected there include construction, hospitality, retail, and manufacturing. The rise is largely attributed to persistently high energy and labor costs combined with reduced demand, squeezing the liquidity of many small and medium-sized enterprises. Notably, 20 of the insolvent companies in Lippe had operated for over eight years, underscoring the structural challenges faced by established firms (Source 135907).

This surge in insolvencies underscores deeper issues within the German economy, especially among small and medium enterprises, signaling ongoing pressures that may reverberate through 2026. The situation continues to evolve as companies and insolvency administrators navigate these challenges amidst uncertain economic conditions.