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Significantly more corporate insolvencies in Saxony

In Saxony, significantly more companies filed for insolvency in the first half of 2023 than in the previous year. According to the trade association, however, this is just the tip of the iceberg.

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Das Bild zeigt ein Schaufenster wo "Wir Schliessen" darauf steht.
The Saxony trade association warns that city centers are dying out. © Bernd Weißbrod/dpa (Symbolic image)

The number of corporate insolvencies in Saxony has risen significantly. In the first half of the year, 377 companies filed for bankruptcy with the local courts. This is an increase of almost one third compared to the same period of the previous year, according to the State Statistical Office in Kamenz on Tuesday. Creditors had filed claims of 270 million euros. According to the report, companies from the construction industry were the most affected.

Dem Saxony Trade Association (HVS) However, according to the study, the published statistics only show half the truth. In fact, retail is dying quietly for the most part. Most closures would not show up in any insolvency statistics, said HVS chief executive René Glaser. "From 2019 to 2022 alone, we've lost over 40,000 retail locations in Germany, and in 2023 it's forecast to be another 9,000 stores."

In addition, the HVS warned against the extinction of city centers. "Without successful retail, city centers, which also have an enormous social and societal function, have hardly any future prospects," Glaser said. Many cities are at a tipping point, he added. Accordingly, the HVS called for, among other things, a targeted expansion of funding instruments - for example, for investments in digitization - and good conditions for a start-up offensive. (dpa)

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