Construction Sector Faces New Setback as Another Company Declares Insolvency

The challenges facing the construction industry continue into 2025 as yet another company succumbs to insolvency. The financial strain from the previous year has been evident, with insolvency rates in Germany rising by 16.8% compared to 2023, as reported by the Federal Statistical Office. This surge in bankruptcies has been attributed to a combination of dwindling orders and escalating costs, creating a precarious environment for many businesses.

According to the German Chamber of Commerce and Industry (DIHK), the current economic climate is characterized by significant burdens from taxes and bureaucracy, contributing to a toxic mix that has left many firms struggling to survive. DIHK Chief Analyst Volker Treier has highlighted the alarming nature of the new insolvency figures, indicating that more than 20,000 company failures are anticipated for 2025. Surveys conducted by the DIHK revealed that nearly 90% of businesses expect stagnant or worsened conditions in the coming months, particularly in sectors such as construction, hospitality, and automotive manufacturing.

Among the latest casualties in the construction sector is Nafz Holzhaus GmbH, based in Baden-Württemberg, which initiated self-administration proceedings on December 30, 2024. The Rottweil court has approved this request, allowing the company to restructure under the guidance of restructuring expert Steffen Beck from Pluta Rechtsanwälte. Despite the insolvency, Nafz Holzhaus GmbH remains committed to fulfilling existing customer orders and accepting new projects.

Managing Director Sebastian Nafz expressed optimism about the restructuring process, viewing it as an opportunity for a comprehensive reorganization that could strengthen the company moving forward. Employee salaries are expected to be secured through insolvency compensation, although the company has not disclosed the number of employees affected.

Beck has reported that initial discussions surrounding the restructuring have yielded positive outcomes, with staff support playing a crucial role in the company's recovery efforts. The insolvency process will be overseen by trustee Dietmar Haffa, who is tasked with safeguarding the interests of creditors.

Nafz Holzhaus GmbH, established in 2013 by brothers Sebastian and Lukas Nafz, specializes in constructing wooden homes. The firm cites ongoing high-interest rates and a decline in orders as primary factors contributing to its financial difficulties.