2025 saw German business insolvencies climb to their highest level in a decade, with 23,900 companies filing for bankruptcy - an 8.3% increase from 2024. This reported surge reflects the serious toll of a prolonged economic downturn, high energy costs, and ongoing bureaucratic burdens.

While all sectors felt the impact, the manufacturing and trade industries saw the sharpest increases and micro-enterprises (with fewer than 10 employees) accounted for over 81% of all cases. The financial damage is estimated at €57 billion, affecting approximately 285,000 employees.

Looking ahead to 2026, experts warn that while government infrastructure investment may offer a slight buffer, the trend remains "dynamic." Without significant structural reforms to address eroding competitiveness and high personnel costs, the insolvency wave is expected to persist through the first half of the new year.

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Kanabo Group, once a flagship medical-cannabis firm on the London Stock Exchange, has entered administration as of 28 November 2025, marking a dramatic collapse for what was once considered a leader of Europe’s cannabis boom.

Joint administrators from RSM UK Restructuring Advisory LLP have been appointed to explore options around restructuring, selling the business or winding-down operations.

Kanabo’s demise completes the downfall of the original wave of four cannabis-listed firms on the LSE from 2021, all of which have now collapsed.
Despite early hype and a pivot from medical devices to digital health platforms, persistent regulatory burden, lack of institutional funding, and chronic financial losses undermined its long-term viability.

Initial hype and a strategic pivot from medical devices to digital health platforms couldn't overcome the core challenges, mainly due to the regulatory burden, a lack of funding, and sustained financial losses which ultimately compromised the company's long-term viability.

More on this at Business of Cannabis

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The Romanian General Prosecutor's Office is conducting a major investigation into the bankruptcy of insurance company Euroins, which has been severely affecting the compulsory auto insurance market in Romania. The investigation, which is reported to have begun in late 2025, focuses on criminal activity between 2017 and 2023.

Authorities are probing senior management and controlling shareholders for alleged fraudulent management, embezzlement, money laundering, and providing false financial information. These individuals are accused of creating and coordinating various schemes to decapitalise the company, drastically reducing its assets and cash availability. Search warrants have been executed at 14 locations, including the homes of ten former executives and the offices of entities controlled by the Bulgarian holding group. The estimated damage from the fraudulent activities exceeds 4.6 million euros.

More on this developing situation here

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Stockholm based Maximum Entertainment AB has entered a restructuring term sheet with its main lender, Olivine Holdings, LLC, to overhaul its capital structure and avoid full insolvency.

The company, headquartered in Stockholm, is utilising a restructuring term sheet to address its insolvency-related issues, having been in payment default on its term loan facilities since Q3 2024. The Company has signed a Term Sheet with its main lender, Olivine Holdings, LLC, aimed at achieving a long-term capital structure and operational stability.

The restructuring involves a group reorganization where a new U.S. entity will assume the operating subsidiaries. The Group's $44.3 million outstanding debt to the lender will be exchanged or cancelled, and Maximum Entertainment AB's guarantees will be released. Olivine are providing a $2.1 credit line to ensure short-term liquidity and enabling operations to continue. 

More on this story at Market Screener

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