Retail Crisis: Number of Insolvencies Rises - German retail insolvencies hit decade-high as traditional stores struggle
German retail insolvencies have surged to their highest level in nearly a decade. Between August 2024 and August 2025, the country recorded 2,490 bankruptcies—more than at any point since October 2016. The rise reflects ongoing struggles as traditional retailers face fierce competition from online marketplaces and shifting consumer habits.
The latest figures mark a 13% year-on-year increase in retail insolvencies for August 2025. While this growth is slower than the 20% spike seen the previous year, it still signals persistent pressure on the sector. High-profile names like Görtz, Gerry Weber, and Esprit have already collapsed, with lingerie chain Herzog & Bräuer filing for insolvency in October 2025. The company operated stores nationwide, including a branch in Augsburg.
Germany’s retail sector now faces a critical period of restructuring. With insolvencies at their highest since 2016, the coming months will test whether struggling chains can modernise quickly enough to survive. Meanwhile, the gap between thriving digital players and traditional brick-and-mortar stores continues to widen.
