Falling to their lowest point during the Covid-19 pandemic, business bankruptcies returned to their pre-crisis levels in the first quarter of 2023, according to figures published by the Altares group on Monday April 17. The figure of 14,317 failures, recorded by the commercial courts over the first three months of the year, up 43.6% compared to the same period of 2022, is equivalent to that of the beginning of 2018 and is within the average of the last twenty-five years.
It remains significantly below the peak of 17,000 failures recorded each first quarter “between the end of 2009 and until 2017”, following the financial crisis, according to data from this group specializing in business information. This “normalization” is not surprising given the slowdown in economic activity and the impact of inflation. The decline in household consumption (−0.5% in Q4 2022) is penalizing retail and personal services in particular.
The sectors most affected by bankruptcies reflect the state of the economy almost perfectly. Food businesses (supermarkets, grocery stores, etc.), catering, which recorded its worst score since 2016, hairdressing salons and beauty salons, which are experiencing a faster acceleration in defects than other activities, which are more business-oriented.
The real estate sector is also distinguished by a surge in bankruptcies at the start of 2023: 192 real estate agencies (+96%) and 87 developers (+107%) have lowered the curtain since January, a phenomenon to be highlighted. linked to the fall in real estate prices, the slowdown in transactions and the rise in interest rates. On the other hand, the construction sector, manufacturing industry and agri-food, as well as agriculture in general are holding up well.
Insolvencies are accelerating in the ranks of SMEs
In terms of business profiles, while bankruptcies have been concentrated since mid-2021 on VSEs, failures seem to be accelerating in the ranks of SMEs. The textile-clothing sector, with a few emblematic brands, is particularly concerned. In total, 59,000 jobs are threatened, estimates the Altares group. If we exclude from this total the particular case of the Orpea group, placed in an accelerated safeguard procedure, 47,000 jobs could disappear following these bankruptcies. “The return to the pre-Covid situation is already there, it is now 2018 and its 55,000 faults which is in the line of sight “says Thierry Millon, director of studies at Altares.
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