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France: business failures accelerate in June


During the 12-month period ending at the end of June, 33,155 companies declared insolvency, or 14.6% more than for the same period ending in June 2021.

Business insolvencies in France slightly accelerated their growth over one year in June, while remaining at a lower level of 35.2% compared to before the health crisis, the Banque de France reported on Friday.

A number much lower than June 2019

During the 12-month period ending at the end of June, 33,155 companies declared an insolvency, or 14.6% more than for the same period ending in June 2021. A slightly more marked increase than that of 10.0% observed in May, according to revised figures published on Friday in the Banque de France press release. However, the developments compared to the period of the Covid-19 pandemic “must be interpreted with caution, since the number of failures was particularly low there“warned the institution. Thanks to public aid to relieve the cash flow of companies during the pandemic and the temporary suspension of certain procedures by the commercial courts, the number of failures in France had indeed fallen to around 27,000 in 2021, against more than 50,000 per year before. the health crisis.

The number of failures recorded in June 2022 thus remains significantly lower – by 35.2% – than that of June 2019. In the month of June alone, the number of new failures “is slightly above 3,000, as overall since the beginning of the year», Indicates the French central bank.

Between July 2021 and June 2022, the growth in the number of insolvencies was fueled particularly by small businesses (+25.7%) and very small businesses (+33.5%). Those of large companies and medium-sized companies, on the other hand, fell by 47.5% over one year. The transport/warehousing (+27.9%), industry (+23.4%) and automobile trade/repair (+18.5%) sectors were the most affected, while real estate activities ( -11.4%) and agriculture/forestry/fisheries (-6.1%) were spared more.



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