Founded in 1866, German textile machinery giant STC Spinnzwirn has filed for bankruptcy.

Recently, German textile machine manufacturer STC Spinnzwirn (Chemnitz Stähler Textile Machinery) filed for bankruptcy, putting the jobs of 140 employees at risk. This is another case of a German textile machinery giant declaring bankruptcy, following the collapse of another German textile machinery giant, Magec, which was acquired by Shishi Huixing Machinery.

According to the interim insolvency administrator, one of the reasons for STC Spinnzwirn’s difficulties is that geopolitical uncertainties have caused clients to significantly delay their equipment purchasing plans. Coupled with the continued rise in global raw material prices, this has directly led to a sharp decline in the company’s order volume, resulting in a substantial drop in revenue and profits.

However, the company believes that its core business remains healthy, and its current primary goal is to ensure that this longstanding enterprise can continue to operate.

It is reported that employees’ salaries will continue to be guaranteed through insolvency benefits from the German Federal Employment Agency until July, and the insolvency proceedings are expected to officially commence on August 1.

The history of STC Spinnzwirn can be traced back to 1866, and it has a development history of 160 years to date.

The company originally manufactured ring spinning machines. It underwent multiple ownership changes, including nationalization after World War II and privatization following the reunification of Germany. In the autumn of 2018, it adopted its current name, STC Spinnzwirn. Currently, it focuses on complete sets of equipment for synthetic filament, monofilament, and flat yarn, and is an important supplier of equipment for plastic textiles and industrial yarns. It has established a production base in Taicang, China.

Against the backdrop of a slow economic recovery and mounting pressures on businesses, the number of company bankruptcies in Germany has risen sharply.

Data from the Leibniz Institute for Economic Research Halle (IWH) show that in the first three months of 2026, a total of 4,573 individuals and corporations filed for bankruptcy, marking the highest level since the third quarter of 2005.

According to data released by the Federal Statistical Office of Germany, a total of 24,064 corporate bankruptcy filings were registered across Germany in 2025, an increase of 10.3% compared to the previous year. This growth continues the previous trend: the number of corporate bankruptcies in 2024 and 2023 also increased by approximately 22%, respectively.