German corporate failures expected to rise

The number of companies and private individuals in Germany who file for insolvency is expected to rise to a new record, financial…

The number of companies and private individuals in Germany who file for insolvency is expected to rise to a new record, financial information group Creditreform said today.

A total of 49,600 companies and individuals were expected to file for insolvency this year, 17 per cent more than in 2000, said a statement by the group. It collects information on businesses, economic research and debt collection.

Creditreform estimated 32,400 companies would go bust this year and that 13,600 individuals would declare themselves insolvent.

In addition, the number of other insolvencies involving clubs and organisations would reach 3,600.

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The Federal Statistics Office in Wiesbaden counted a total 42,300 insolvencies in 2000. In the seven months to July this year, 18,982 companies in Germany filed for insolvency, 18.2 per cent more than in the year-earlier period.

AFP