Corporate Bankruptcies in Switzerland Reach Record High - Legal Amendment Significantly Drives Insolvencies

The rise in insolvencies, aside from the challenging macroeconomic environment, is related to an amendment in the Swiss Debt Enforcement and Bankruptcy Law (SchKG), which came into force on January 1, 2025. This reform requires public creditors, such as tax authorities and social insurance institutions, to assert outstanding claims against companies through bankruptcy proceedings. Previously, these institutions could initiate enforcements but were not obliged to file for bankruptcy, allowing many over-indebted companies to continue operating.

With the new regulation, public creditors are now treated as equals to private creditors, leading to significantly stricter enforcement and a short-term increase in bankruptcy proceedings. The reform aims to lead to better payment discipline and a fairer competitive landscape in the long term.

Marked Regional Differences

The analysis highlights significant regional differences in the development of corporate bankruptcies. The number of bankruptcies rose the most in Central Switzerland (+48 percent), followed by the Espace Mittelland (+44 percent), as well as both North-Western and Eastern Switzerland (each +43 percent). In South-Western Switzerland, the bankruptcy numbers rose by 42 percent. The increase was somewhat more moderate in Ticino (+34 percent) and Zurich (+28 percent). These differences illustrate that the impact of the legal amendment varies regionally, depending on the respective economic structure, debt situation, and industry shares.

Broad Increase Across All Sectors

The analysis of industries with at least 100 bankruptcy cases shows significant growth across all sectors. The manufacturing of durable goods is the most affected (+64 percent), followed by the IT sector (+60 percent), holding and investment companies (+59 percent), as well as business services (+55 percent). This trend underscores that the legal amendment primarily affects companies that were already struggling with low liquidity or structural issues.

More Start-ups Despite Uncertain Framework Conditions

Alongside the rise in insolvencies, the number of new business formations also increased. In the first three quarters of 2025, 40,866 new companies were registered in the commercial register, an increase of 4 percent compared to the previous year. Central Switzerland showed the highest willingness to start new businesses (+11 percent), followed by Zurich (+6 percent) and both the North-Western and South-Western Switzerland (each +4 percent). In the Espace Mittelland, there was a slight increase of 2 percent, while the number of start-ups stagnated in Ticino and slightly declined in Eastern Switzerland (–1 percent).

Double-digit growth in new registrations was noted especially among real estate agents and management (+20 percent), holding companies (+17 percent), and the IT sector (+16 percent). In contrast, declines were recorded in retail (–11 percent), land transport and logistics (–5 percent), as well as the hospitality industry (–3 percent).

Short-term Strain, Long-term Stabilisation of Market Structures

"The sharp rise in bankruptcies is a direct result of the legal amendment and shows how consistently the new regulations are being implemented," says Marianne Bregenzer, Country Lead Switzerland at Dun & Bradstreet. "In the short term, this leads to an increased burden on companies and authorities, but in the long term, it brings more transparency and stability to the Swiss economy. To navigate this transition period well, it is crucial for companies to know their risks and proactively manage them with up-to-date information on their customers and suppliers."

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