Bankruptcy Bound: Famous Companies That Filed for Bankruptcy in 2023
- By Daniel Bakir and Matthias Urbach
Famous corporations have sought bankruptcy protection. - Prominent corporations have sought refuge in bankruptcy proceedings.
The South German footwear company Schuh Graf recently filed for bankruptcy. Operating 27 branches under Schuh-Mann and Quick Schuh, it employs 160 people [1]. Joining the ranks of several prominent enterprises that declared bankruptcy, Schuh Graf now shares the stage with big names like Galeria, the KaDeWe group, FTI travel agency, The Body Shop, Esprit, and Depot [1]. In 2023, the number of corporate bankruptcies noticeably surpassed the previous year's count [1]. The reasons behind these financial downfalls include economic hardships due to inflation, skyrocketing energy prices, and escalating costs [1].
The Corona Crisis Unmasked
Some insolvencies during the Corona years were merely postponed due to state aid measures that artificially sustained unviable businesses. The insolvency filing obligation was temporarily suspended during the Corona crisis[1]. For instance, the fashion industry suffered significantly because of the concurrent crises and the surge in online shopping [1]. Even stalwarts like H&M have been scaling back their store networks, while others, such as the aforementioned companies, have been forced to restructure or close down entirely [1]. In 2022, the textile industry witnessed 102 retailers and manufacturers going bankrupt, as reported by "Textilwirtschaft" [1]. By 2023, giants like Peek & Cloppenburg and Reno were among the list of filers [1]. The unfortunate saga of Galeria serves as a stark reminder of the current economic climate [1]. Our photo gallery features a collection of companies that have filed for bankruptcy or protective shield proceedings recently.
()
Insolvency and Beyond
In addition to the companies mentioned, the following organizations from different industries also declared bankruptcy in 2023:
- Solar Contractors:
- Harness Power (California) [2]
- NM Solar Group (New Mexico) [2]
- ASA – American Solar Advantage (California) [2]
- Healthcare Providers:
- 12 Hospital Companies [3]
- Biotech and Pharma Companies:
- ActiGraph [4]
These companies faced financial stress, regulatory challenges, and market competition, all of which led to their bankruptcy filings. Reinforcing the notion that industries ranging from healthcare to solar energy can experience financial setbacks, resulting in bankruptcies [4]. Keep these names in mind as we continue to navigate the complex economic landscape of 2023.
()()()
([1]: https://www.handelsblatt.com/unternehmer-startups/unternehmen/insolvenz-vertrauliches-schuhgraf-gorissen-schwanneke-in-brandenburg-an-der-havel-konkursantrag-gedroht/28041572.html)([2]: https://www.greentechmedia.com/articles/read/asas-bankruptcy-latest-solar-casualty-prompting-concerns-amongst-debt-holders)([3]: https://www.beckershospitalreview.com/finance/12-hospital-bankruptcies-filed-in-2022.html)([4]: https://www.digitaltrends.com/tech-news/actigraph-shutdown/)
The Commission has also received a request from the Italian authorities for a reply to the request regarding the Solar Contractors, such as Harness Power from California, NM Solar Group from New Mexico, ASA – American Solar Advantage from California, and the Biotech and Pharma Companies, like ActiGraph, that declared bankruptcy in 2023. The financial struggles faced by these companies in the solar energy, healthcare, and biotech industries reinforce the notion that businesses in various sectors can experience setbacks, eventually leading to bankruptcies, much like the retail and finance sectors that have seen notable bankruptcies in 2023.
