Sharp Decline in Rescue Rates of Large Insolvent German Companies Signals Economic Strain

A recent study by consulting firm Falkensteg highlights a steep decrease in the rescue rates of large German companies facing insolvency, based on an analysis of 486 insolvency proceedings in 2025. Only about 32.1% of companies with annual revenues exceeding €10 million were either restructured or sold to investors last year, marking a significant drop from 57% in 2020. This decline reflects a shift in the nature of insolvencies, moving away from temporary financial difficulties toward fundamental issues like unsustainable business models.

The study, authored by Falkensteg partner Jonas Eckhardt, points out that the chances of survival for insolvent businesses have reached record lows. Insolvency is increasingly being viewed not as a new beginning but as a terminal event. The analysis shows that industries such as healthcare maintain higher rescue rates—around 50%—while logistics firms were saved in 42.1% of cases. Conversely, only 6.1% of insolvent car dealerships were rescued, highlighting sector-specific disparities.

Key challenges driving this trend include rising energy prices, high labor costs, and looming supply chain disruptions. Eckhardt predicts about 450 large insolvencies in 2026, continuing the strain seen in the automotive supplier sector despite a brief easing in 2025. The shift in insolvency causes towards lacking viable business concepts emphasizes the need for structural adjustments within affected sectors.

This study reveals that insolvency in Germany is becoming less about recovery and more about closure, especially for larger companies. The findings underscore growing economic difficulties amid rising operational costs and evolving market conditions, stressing the importance for companies to adapt quickly to remain viable in the changing environment.