German Business Bankruptcies Hit 21-Year High as Hospitality, Retail and Bakeries Bleed
Published on 07/12/2026 at 09:33 | Redaktion boerse-global.de
The German bakery sector has recorded a staggering 40 percent jump in insolvencies during the first half of 2026, according to data from Creditreform. Surging energy, labour and material costs, combined with relentless pressure from grocery retailers, are pushing small artisan bakers to the brink. The broader picture is even grimmer: the Leibniz Institute for Economic Research Halle (IWH) counted 4,996 corporate failures in the second quarter of 2026 — the highest figure in 21 years and a 9 percent increase from the first quarter.
June alone saw 1,702 companies file for insolvency, a 12 percent rise month-on-month and a 20 percent jump compared with June 2025. Roughly 45,500 jobs are now at risk. The hardest-hit sectors remain hospitality, construction and retail, with restaurants and cafés in particular struggling to stay afloat.
In Albstadt, a gastronomer has permanently closed two of his cafés, citing acute staffing shortages and excessive bureaucracy. He plans to shift entirely to a food truck operation. In Rheda-Wiedenbrück, the restaurant Clapperton's Speisekammer will shut its doors at the end of July 2026 after a year-long rescue attempt. A Spanish bodega in Zweibrücken abruptly ceased operations in early July. The operators of the Waffelstübchen in Unna blamed health reasons and a lack of successors for their closure this Sunday. Even as one ice-cream café in Mönchengladbach celebrated its 50th anniversary in July, the wave of shutdowns underscores the intensity of the crisis.
Industry Fires Off Urgent Letter Against Mini-Job Reform
A coalition of business associations has escalated pressure on Berlin. The German Hotel and Restaurant Association (DEHOGA) and the German Retail Federation (HDE) sent an urgent letter to Labour Minister Bas and Health Minister Warken, warning that proposed changes to the mini-job system could be devastating.
At issue is a plan to raise the flat-rate tax on marginal employment from 2 percent to 5 percent. The associations argue this would make mini-jobs significantly more expensive for employers, triggering a sharp reduction in low-hour positions and inflating operating costs precisely in industries already buckling under financial strain. They fear the special tax status for roughly 7 million mini-jobbers would effectively be dismantled.
Tariff Talks Heat Up as NGG Demands Double-Digit Gains
Meanwhile, wage negotiations are turning confrontational. The Food, Beverages and Catering Union (NGG) is pushing for substantial raises in multiple regions. In North Rhine-Westphalia, the union demands a 6 percent wage increase. In Schleswig-Holstein, it seeks 5.95 percent plus an additional €120 per month in training allowances, all within a one-year contract period.
The NGG argues that many workers in the sector face gruelling physical demands and financial hardship, and that wages must catch up with inflation and industry stress. The next round of talks in NRW is scheduled for 16 July 2026.
DEHOGA has flatly rejected the demands, insisting that most businesses are in no position to absorb such increases given the current economic fragility.
Austrian Politics Intervenes
Across the border, Austria's tourism industry has drawn direct state involvement. State Secretary Zehetner is mediating negotiations after unions called for higher minimum wages in the sector. The move highlights how political pressure is mounting beyond Germany as the hospitality and retail crisis ripples across the region.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
