Wave of Insolvencies Hits German Companies Amid Market and Succession Challenges

Several notable German companies across diverse sectors have filed for insolvency between 2023 and 2026, reflecting ongoing economic and operational stresses within the German business landscape. In Bavaria, Varta, a manufacturer of batteries, filed for preliminary insolvency in July 2026 due to poor market conditions, weakened demand, negative currency effects, and losing a major customer. Electric air taxi pioneer Lilium, founded in 2015, declared bankruptcy in October 2024 after failing to launch its product and exhausted funding, resulting in the sale of its patents to U.S. competitors and the termination of 1,000 employees.

The restaurant chain Sausalitos filed for insolvency in March 2025 after a sharp decline in guests following the COVID-19 pandemic, impacting 40 locations. Meanwhile, book retailer Weltbild faced insolvency for the second time in June 2024, closing its remaining 14 stores and laying off 440 employees due to a lack of investors. Feneberg, a regional supermarket chain with over 70 outlets, sought protective insolvency in early 2026 but is aiming to restructure while keeping stores mostly operational.

Travel agency FTI filed for bankruptcy in June 2024, disrupting travel plans for 60,000 customers and causing 1,100 employees to lose their jobs. In September 2023, traditional toy manufacturer Haba also filed for insolvency but intends to continue operations in its toy and furniture divisions post-restructuring.

Beyond these individual cases, a broader challenge looms over Germany’s corporate sector. Many thriving companies are struggling with a crucial generational change, unable to find successors to take over leadership. This failure threatens not only the survival of individual businesses but also poses a risk of substantial economic loss for Germany’s business ecosystem, potentially leading to widespread decline in vital economic structures.

These developments underline the economic difficulties facing German enterprises amidst market pressures and demographic shifts, spotlighting the urgent need for strategic measures to support business continuity and succession planning.