However, they have not yet returned to their pre-health crisis level.
The opening of collective proceedings before the commercial courts increased by 66% over one year for the period from July 1 to October 31, the National Council of Commercial Court Registrars reported on Tuesday. The level of business failures, which had fallen sharply during the Covid-19 crisis thanks to the government’s business support measures, has not yet returned to its pre-health crisis level.
Over the last four months, the number of companies in difficulty before the commercial courts has thus risen to 12,059, compared to more than 50,000 annual failures before the health crisis. The National Council of Registrars, which publishes its barometer with the Xerfi Institute, points out that “the economic downturn is now certain” and that in the face of inflation and the weakness of the euro which degrade purchasing power and weaken consumption, “companies are facing sluggish domestic demand with no possibility of international takeover“.
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There are significant differences between sectors and geographical areas. The opening of insolvency proceedings jumped over the period by 110% in Hauts-de-France or even 90% in Auvergne-Rhône-Alpes, while their increase was limited to 53% in Ile-de-France.
The most affected accommodation and catering
At the sectoral level, accommodation and catering is the hardest hit with a 124% rebound in insolvencies, albeit starting from a particularly low level, this sector having been greatly protected by government measures during the health crisis. . Manufacturing and extractive industries rebounded by 81%, financial and insurance activities by 78% and trade by 73%. The sectors least affected by the rebound are agriculture, forestry and fishing (+20%) and real estate activities (+35%).
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Also over the same period, the collective proceedings reported by the commercial courts are 77.5% direct judicial liquidations, 20% judicial reorganizations and 2.5% safeguard proceedings. In addition, the number of voluntary radiations increased by 8% over one year and their share increased to reach almost half of the total radiations.
“Windfall effects have appeared with government aid, allowing managers of already fragile companies to disengage more favorably“, explains the national council of clerks. Over four months, nearly 50,000 voluntary radiations were recorded. Finally, 22% of all write-offs are young companies created since 2020, many of them in home delivery services and distance selling.
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