Insolvency shock: traditional company Meeth in the construction crisis!

Insolvency shock: traditional company Meeth in the construction crisis!

On February 12, 2025, Helmut Meeth GmbH & Co. KG filed for bankruptcy. The company, which has been working in window and doors for 40 years, is faced with considerable challenges in the middle of a crisis in the construction industry. The decline in building permits, which has been observed since 2023, has a direct impact on the company's order figures. This development is not isolated, but part of a major problem that affects many actors in the industry.

In the past few months, the construction industry in Germany, especially in Berlin and Brandenburg, has shown a dangerous tendency. The bankruptcy of Meeth is just one of many examples that illustrate the current difficulties of the industry. According to rbb24 , a bankruptcy wave will be expected from real estate companies in the coming months. Thousands of jobs could be lost, while the industry is still fighting structural problems.

important challenges in the construction industry

Five central problems have emerged as main obstacles for the construction industry:

• bureaucracy: The specialist community Bau has identified over -regulation as the main problem. Waiting times for building permits in Berlin are up to eight months. A lack of deadlines and the existence of 16 different state building regulations significantly extend the approval processes.
• shortage of skilled workers: Around 300,000 specialists are missing in the German construction industry. The Central Association of German Construction (ZDB) expects the loss of 30,000 jobs in 2024 because a third of the construction workers are over 55 years old.
• canceled orders: in December 2023, 22.1% of the companies reported order cornation, while 56.9% of housing construction companies fight with low order stocks.
• poor financing conditions: The key interest rate of the European Central Bank is 4.5%, while construction interest is 3.4%. High costs make the construction of living space increasingly unattractive.
• increasing construction costs: in November 2023, prices for new buildings rose by 4.3% compared to the previous year. This is partially attributed to raw material shortages caused by the UkraineKlieg.

The bankruptcy of Helmut Meeth GmbH could possibly also result in a realignment of the company if it is possible to win new investors. The district court of Wittlich has appointed the Lieser law firm as an insolvency administrator in order to stabilize the financial situation and to initiate potential renovation. It remains to be seen whether active investor search will be successful.