Bankruptcies Surge: Turkey’s Concordat Filings Hit All-Time High

Turkey is witnessing a sharp escalation in concordat filings, a legal shield meant to rescue struggling companies from collapse. In September 2025 alone, courts handed down 172 definitive concordat rulings, marking the highest monthly figure in history. The trend underscores how deeply the private sector is struggling with financing shortages and working capital constraints.

Record Numbers Point to Severe Stress

According to Konkordatotakip.com, concordat cases surged to alarming levels in 2025. Between January and September:

• Provisional Concordats: 2,085 cases, up 76% from the same period last year. This already surpasses the total for all of 2024.

• Definitive Concordats: 1,212 cases, representing a staggering 171% increase year-on-year.

The sheer acceleration highlights a business climate where companies are increasingly unable to service debt, turning to courts in a last-ditch attempt to restructure.

More Bankruptcies Than Rescues

Perhaps most worrying is the low success rate of concordat processes. Over the first nine months of 2025, courts issued 165 bankruptcy rulings compared to just 67 approvals (tasdik)—a ratio that reveals more companies are being liquidated than saved.

This raises concerns that concordat, originally designed as a lifeline to protect firms and their creditors, is increasingly functioning as a slow march toward bankruptcy.

Textile Industry Hardest Hit

The burden is not spread evenly across sectors. The textile and apparel industries stand out as the worst affected:

• 147 provisional concordats were filed in textile alone.

• Including ready-to-wear, the tally reached 192 filings.

• Construction followed with 92 cases, cementing its status as another sector under extreme pressure.

The data shows that labour-intensive export sectors, particularly textiles, are suffering disproportionately from global demand weakness and domestic financial strain.

Business Leaders Demand Legal Reform

Industry representatives argue that the current system is being exploited by some firms, undermining creditor confidence. They call for urgent reform as the Ministry of Justice prepares changes to the Execution and Bankruptcy Law.

One of the main proposals is to limit concordat protection only to public and banking debts, while excluding private commercial obligations. Business leaders insist this would prevent abuse, protect suppliers, and restore trust in the restructuring process.

A Tense Final Quarter Ahead

As Turkey enters the final quarter of 2025, the concordat landscape paints a stark picture: surging filings, rising bankruptcies, and limited success stories. Unless reforms are enacted and access to financing improves, the wave of failures may deepen, threatening not just individual sectors but the broader fabric of the real economy.