Reported in EU Today, Germany is experiencing its highest corporate bankruptcy rates since 2009, driven by rising costs, high interest rates, and reduced state support. 

 

According to a study conducted by the Halle Institute for Economic Research (IWH) in late 2024, 4,215 companies declared bankruptcy, a 36% year-on-year increase, resulting in nearly 38,000 job losses. The surge reflects challenges in adapting to rising borrowing costs and the withdrawal of pandemic-era subsidies. Key sectors hit include services (47% rise) and manufacturing (32% rise), impacted by inflation, energy costs, and supply chain issues. 

 

The trend underscores broader economic vulnerabilities in Germany, Europe’s largest economy, affecting consumer confidence, employment, and growth. Policymakers face tough decisions to balance inflation control and business relief, while structural reforms are needed to address long-term challenges. Germany’s struggles highlight risks for other European economies amid global economic pressures.

Source: https://eutoday.net/germany-faces-unprecedented-bankruptcy-surge/

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Neville Taylor, 57, has been disqualified for nine years for his involvement in a scheme to circumvent UK insolvency laws. He was paid over £250,000 by corporate rescue firm Atherton Corporate (UK) Ltd, to become the sole director of more than 400 firms, including 12 that ceased trading but had not entered liquidation. 

 

When these companies eventually liquidated, over £7.6 million in assets were unaccounted for, despite initially holding assets worth £8.2 million. The Insolvency Service strongly condemned Taylor's actions, emphasizing that they will not tolerate individuals who evade their legal responsibilities as directors or facilitate schemes that undermine the insolvency system. Taylor's disqualification serves as a warning to those who may consider engaging in similar actions. They also stated that Taylor breached his duties by obstructing liquidators and failing to identify or recover company assets, causing significant losses to creditors and enabling ‘phoenixism’. 

 

As reported by the BBC, the ban prevents him from managing his existing companies and others across multiple UK locations.

Source: https://www.bbc.co.uk/news/articles/c8j94np0193o

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The Swiss government issues opinion on the report of the Parliamentary Investigation Committee concerning Credit Suisse. It adopts 20 recommendations, among which are:

• Strengthening the mechanism of reporting at the stage of risk management
• Enhancement of efficiency of the enforcement proceedings before FINMA
• A more stringent implementation of requirements on quality and quantity of the capital of systemic banks
• Improvement of transparency of audits made by public authorities and in situations of crisis
• Adaptation in case of digital bank run at the international level
• Centralisation of supervision and audit of systemic banks to FINMA
• Strengthening the involvement and powers of the Federal Competition Commission COMCO vis-à-vis FINMA

Summary provided by Antonia Mottironi, Ardenter Law. 

The full Press Release can be read here:
Federal Council issues opiniohttps://www.admin.ch/gov/en/start/documentation/media-releases.msg-id-103689.htmln on report of Parliamentary Investigation Committee concerning Credit Suisse

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The challenging funding environment in 2024 has driven several startups to insolvency, particularly those unable to raise capital or achieve profitability. Notable casualties span sectors like hardware (Northvolt, Lilium), foodtech (Allplants), and fintech, reflecting broader market struggles
 
Companies like Arrival, Cazoo, and Infarm exemplify high-profile failures due to unsustainable growth, debt burdens, or operational inefficiencies. Despite raising substantial funding, they succumbed to market pressures, including rising costs, economic shifts, and competitive challenges.
 
Even promising sectors like mobility (Cake, Vässla) and deeptech (Prophesee) saw setbacks, with companies facing funding delays and project failures. Some, like Lilium, hope for revival through acquisitions, but these cases underscore the fragility of ambitious, capital-intensive ventures in turbulent times.
 
RIP: The startups that went bust in 2024 | Sifte

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Alitalia, Italy’s defunct national carrier, is moving toward full liquidation, with plans to lay off its remaining 2,059 employees during January 2025. This includes over 1,100 flight attendants and 82 pilots. Worker unions, including Cub Trasporti, have requested an extension of the current redundancy fund, proposing it as a bridge for workforce reallocation to Alitalia’s successor, ITA Airways, or related companies like Swissport and Atitech. 

The layoffs coincide with challenges in ITA Airways’ merger talks with Lufthansa. The Italian Economy Ministry has reportedly stalled negotiations over the price adjustment for a 41% stake in ITA Airways, citing poor fourth-quarter performance. Lufthansa has reiterated its commitment to the 2023 contract terms, emphasising compliance with agreed deadlines for its investment in ITA Airways. 

Union leaders have criticised the government for prioritising workforce replacement over relocation, alleging a preference for cheaper labour. The Italian government’s pursuit of a stake sale in ITA Airways to Lufthansa continues as Alitalia’s liquidation and workforce restructuring progress toward completion.

All Alitalia employees to be laid off by 2025 - ch-aviation

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