Rising Business Bankruptcies in France: Highest Figures Since 2018

2023-10-17 20:30:10

The “parenthesis” of the health crisis due to Covid-19, which made it possible to contain bankruptcies thanks to state aid, is now well and truly closed. According to data published Tuesday October 17 by the Altares firm, 41,000 French companies entered into legal proceedings between January and September 2023, the highest figure since 2018. “ Under these conditions, we can reach 55,000 files at the end of the year: we are at low levels, there are no real surprises, good or bad », underlines Thierry Millon, director of studies at Altarès.

Administrators and legal representatives make a comparable observation: “ We will be between 45,000 and 50,000 files at the end of the year », Indicates Maître Frédéric Abitbol, ​​president of the National Council of Judicial Administrators and Judicial Agents (CNAJMJ).
If this resumption of bankruptcies, in a context of sluggish growth and inflation, surprises no one, there are a few warning signs. Notably the fact that they affect slightly larger companies than at the start of the year, reflecting the difficulties specific to certain activities. “ The weight of SMEs in insolvencies is now the same as during the financial crisis, around 8%. », Specifies Mr. Millon.

« Of our 39,000 current files, just over 23,000 concern small businesses with between zero and ten employees.confirms Me Abitbol, but cases affecting companies with more than 1,000 employees are a little higher than usual”. A phenomenon linked in particular to the clothing or real estate crisis. Stéphane Colliac, senior economist at BNP Paribas, notes that “ 50 large companies and ETIs [entreprises de taille intermédiaire] have been subject to collective proceedings over the last twelve months, i.e. twice as many as before Covid, with a preponderant weight of the textile trade ».

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Failures of BtoB companies

Another trend to watch out for is that failures are affecting companies whose activity is aimed at other businesses (BtoB) more than before, rather than those which are aimed directly at consumers. “ This corresponds to a fundamental evolution of the economic landscapedeciphers Denis Ferrand, general director of Rexecode. Difficulties are shifting from households to businesses; if it is the former which slowed down growth in 2023, the latter will set the pace in 2024. »

Read also: Article reserved for our subscribers The number of business bankruptcies is on the rise again in France

Logically, the more employees the companies that fail have, the greater the impact on employment. The companies which are currently in procedure, whether it is a safeguard, a recovery or a direct liquidation, represent around 156,000 jobs, according to the CNAJMJ.

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