The Rise of Business Insolvencies: A Look at the Current Situation in France

2023-04-17 20:00:00

It is still not the “wall of bankruptcies” feared by some at the start of the health crisis, three years ago. But the rebound in business insolvencies, largely under way for more than a year, has taken a symbolic step. In the first quarter of 2023, the number of insolvency proceedings opened exceeded its level at the start of 2019, according to the firm Altares. With 14,317 companies concerned, this is up 43.6% over one year. “There are really no surprises. Insolvencies have been bouncing back at a very strong pace for several months already”points out Thierry Millon, director of studies at Altares Dun & Bradstreet.

This jolt marks a return to normal. For two and a half years, companies have benefited from massive support to get through the health and energy crisis and get back on their feet. Enough to plunge defaults to a historically low level. The French Observatory of Economic Conditions (OFCE) estimates overall that nearly 110,000 bankruptcies have been avoided since 2020. “For some, the difficulties have only been postponed. But some of the companies have recovered their health thanks to the aid deployed, ” anticipates Thierry Millon.

industry spared

[…]

This article is reserved for our L’Usine Nouvelle subscribers

Support expert journalism.

Already subscribed?
Login

VOS INDICES

Selected for you

Emmanuel Macron launches a program for 100 days, with a

1681765716
#procedures #months #business #failures #preCovid19 #level

Leave a Replay