Business failures in France continued to decline in October, with their cumulative number over the past 12 months reaching their lowest level in at least 30 years, the Banque de France reported on Wednesday.
Between November 2020 and October 2021, only 26,907 companies were declared in default, while the country had twice as many each year before the health crisis.
Read alsoBusiness failures still on the decline
Compared to the end of October 2019, the 12-month total of defaults is down 48.1%, details the French central bank in its press release, the comparison with 2020 (-22.1%) being distorted by the temporary closure commercial courts during the first months of the Covid-19 crisis. This decrease concerns companies of all sizes, except large and mid-size companies (ETI), for which insolvencies increase by 4%.
The Banque de France underlines that, "
despite the gradual abandonment of the crisis exit mechanisms
", there is, "
at this stage, no sign of a resumption of insolvencies or of a wave of bankruptcies to come
" .
The spectacular drop in the number of failures compared to the pre-health crisis concerns all sectors of activity.
Paradoxically, it is in catering accommodation, particularly affected by administrative closures, that it is the strongest, with a drop of 62.4% compared to October 2019. For this sector, the decrease in the number of insolvencies s 'has also been accelerating for a year, with a 44.1% drop in defaulted payments recorded compared to October 2020.
