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Berlin and Brandenburg See Sharp Rise in Insolvencies, Surpassing €18 Billion in Claims

A 25% surge in insolvency filings, driven by economic pressures and the Signa collapse, has strained local courts and highlighted growing financial distress.

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Overview

  • Berlin reported 2,092 insolvency filings in the past year, a 27% increase, while Brandenburg recorded 431 filings, up 24.6%.
  • Combined creditor claims from insolvent companies in the two regions exceeded €18 billion, with Berlin alone seeing a 900% surge in claims.
  • Of more than 2,500 filings, around 1,700 proceedings were initiated, while the rest were dismissed due to insufficient debtor assets.
  • The collapse of Signa, a high-profile case, has placed significant strain on Berlin's courts, underscoring systemic challenges in managing large-scale insolvencies.
  • The rise in insolvencies reflects broader national trends tied to the end of pandemic support, rising energy and labor costs, and higher interest rates.