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Near-Record Retail Failures in Germany as Groschen-Markt Files for Insolvency

Costly digital overhauls leave smaller chains exposed to online rivals.

Overview

  • Allianz Trade counted 2,490 retail insolvencies from August 2024 to August 2025, the highest since 2016 and just below the 2015–2016 peak of 2,520.
  • DEC Handelsgesellschaft, operator of Groschen-Markt, entered insolvency proceedings with 47 stores remaining open and roughly 200 employees affected.
  • The Amtsgericht Mühlhausen appointed Olaf Spiekermann as preliminary administrator, with wages secured via insolvency benefit through February 2026 while restructuring options are reviewed.
  • Company statements cite weak consumer demand, higher infrastructure and personnel costs, and a shift toward price-aggressive online platforms as key pressures.
  • Experts expect further consolidation even as the pace of failures slows, with EU ministers planning duties on low-value parcels from China in 2026 and many retailers facing heavy up-front tech investment needs.