2023-07-28 08:44:29
In Lille, a shoe store closed for bankruptcy, April 19, 2023. LEROY GUY / GUY LEROY
Falling consumption, tightening of credit, downturn in activity in certain sectors such as construction: unsurprisingly, many companies are encountering difficulties in the face of this deteriorating context. The figure of 13,266 insolvencies recorded in the second quarter of 2023 is the highest since 2016, according to figures compiled by firm Altares, which specializes in business data. The number of bankruptcies, which has fallen to its lowest since 2020 thanks to the support measures put in place by the State during the Covid-19 pandemic, is now close to pre-crisis levels.
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Over twelve rolling months, according to Altares, the milestone of 50,000 procedures, i.e. the average level of bankruptcies recorded between 2000 and 2019, could be reached. Despite a slightly different scope of calculation and figures, the Banque de France observes the same trend. At the end of June, the institution recorded 48,673 openings of legal proceedings, a figure that has been increasing for six consecutive quarters. We are still far, however, from the record figures reached during the 2009 financial crisis, when 65,000 French companies defaulted.
Another characteristic of this “normalization” of the level of bankruptcies: if they still affect an overwhelming majority (nine cases out of ten) of very small companies, more and more SMEs, even medium-sized companies (ETI) are affected , resulting in a greater impact on employment. The number of defaults increased by 33% among SMEs in the second quarter of 2023 compared to that of 2022, and by 55% among VSEs and ETIs. As a result, in mid-2023, around 55,700 jobs are subject to a procedure. This is the highest figure since 2014, assures Altares.
Cascading effects
The bankruptcy of Getir, alone, leads to the dismissal of 1,708 people, that of Courtepaille 1,620, of Place du Marché (ex-Toupargel) 1,417, of San Marina shoes 680… To this must be added the cascading effects : “The tension that we are encountering on SMEs risks translating into defects also in the ranks of subcontractors”, observes Thierry Millon, Director of Studies at Altares. The risk is particularly high in the construction sector.
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The effect of this rebound in insolvencies on the unemployment rate should be limited in the short term. The French Observatory of Economic Conditions expects a slight increase in this to 7.4% at the end of 2023, against 7.1% today. The Banque de France is also considering, in its latest forecasts, a rise linked to the slowdown in activity, but not before 2024.
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