The large insolvencies of companies with over EUR 10 million sales in the fashion industry (manufacturer and dealer) and in retail declined in 2024 after a high in the previous year. In the fashion industry, the bankruptcies decreased from 33 to 19, in retail from 30 to 28. The figures were compiled by the Falkenstein management consultancy.
The decline is not a sign of relaxation, Sebastian Wilde, partner at Falkenstein, is one: “Sebastian Wilde, partner at Falkensteg, explains the situation:“ The consumers currently lack confidence in the future and concern for the security of the workplace in the foreground. As a result, consumers save and hoard their money. ”The decline in the fashion led therefore does not constitute a relaxation of the situation. The sales in the winter months only reached the previous year’s level. In addition, retailers have to compensate for additional costs, such as personnel, energy and rents. “The turbulence will also stop in 2025 and only have to grow sales, if at all.”
The bankruptcy in retail shows a division of two between the areas of Fast Moving Consumer Goods (FMCG) and investment goods such as fashion, furniture or electrical engineering. While the bankruptcies in the FMCG area drop primarily due to the decline in the food sector, the bankruptcies in the investment goods sector stagnate at a very high level. For 2025, the bankruptcies in the fashion sector and retail will rise slightly again in the single -digit range, forecasts Wilde. The uncertainty of consumers and the refusal to consume would last a few more months. Even economic impulses from politics could take effect after the Bundestag election at the end of the year at the earliest: “In addition, the current stagnation is at risk that companies that come fresh from a renovation process quickly get back into trouble. Because they start from a bad position, especially when financing new ones. ”
