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The number of business failures on the rise in the second quarter

2021-07-08T18:14:40.198Z


6,587 insolvency proceedings were opened between April and June, or 14.2% more than the same period in 2020. However, figures are far below those recorded in 2019.


If the epidemic has gained ground for a few days, on the economic front, French companies are resisting.

In its last quarterly barometer on business failures, published on Wednesday evening, the Altares cabinet stresses that judgments "

remain lower

"

than

the level recorded in 2019. By far, even: "

the volume of judgments remains twice lower than the level of 'before Covid

', we read in a

press

release sent with the study.

Read also: Why the bankruptcy wall has not yet been lifted

In the second quarter, only 6,587 insolvency proceedings were opened, a number "

up 14.2% compared to the second quarter of 2020

".

Let us recall, however, that the situation was exceptional last year, with confinement paralyzing the activity of the courts for part of the period studied.

The rate of liquidation of companies "

remains very high

", notes the cabinet: 4,927 cases ended with a direct judicial liquidation, a sign "

that the companies which appear in court are in such a fragile situation that it is no longer possible to offer them an alternative

”. The ax falls quickly, the groups being too weak to be saved. At the end of June, 20,000 jobs were threatened, a number twice less than a year earlier on the same date. At the time, large brands had found themselves at the foot of the wall, taken by the throat by the health crisis. “

Clothing concentrated more than one in three threatened jobs

», Recalls Altares.

This time, the Appart'City hotel group is the only one of more than 1,000 employees to be in default.

The situation differs according to the sectors and the size of the company.

The smallest companies are also the most fragile: very small businesses with fewer than six employees account for 89% of insolvencies.

The phasing out of “

whatever the cost

” is logically leading to an increase in insolvencies in almost all sectors, from construction - where the increase is greatest - to business services, including transport and agriculture. .

However, some are resisting better, such as commerce, agribusiness, clothing and industry, where trends are “

still very favorable

” and state aid strong.

Altares also highlights the differences between regions: insolvencies are increasing sharply in Île-de-France and Provence-Alpes-Côte d'Azur, by more than 36%. The increase is around 17% in three other regions, and the results are less alarming in Grand-Est, Nouvelle Aquitaine, Occitanie and Bourgogne-Franche-Comté. Conversely, Normandy, Brittany and Hauts-de-France are seeing the number of proceedings continue to decline.

In the longer term, the "

number of business failures remains paradoxically low

", despite the health crisis. "

The hearings are still far from having regained their pre-Covid pace,

" comments the director of studies of the cabinet, Thierry Millon, quoted in a

press

release. The number of failures should not jump in the coming months, says the expert. The “

summer vacations in the courts

” as well as the current dynamism of the French economy will limit judgments over the third quarter.

Then, in the last quarter, the gradual end of "

whatever the cost

" should increase the number of bankruptcies, without leading to a "

strong surge

in insolvencies

" or even a return to the level of 2019. "

The mediation and the amicable treatment of late payments should still be favored, thereby limiting forced recovery and summons

”, he analyzes.

Rising commodity prices, a source of concern for SMEs

This observation, however, depends on several unknowns, whether it is the evolution of the economic situation, the health situation, or the "soaring commodity prices", which is generating "

new concerns

". These price increases risk weighing on the balance sheet of companies, forcing them to dip into their stockings or limit their margins. Enough to weaken their profile or even “

compromise the sustainability of SMEs and midcaps

” already undermined by eighteen months of crisis.

The situation of companies remains closely scrutinized by many players, while some warn about the "

wall of bankruptcy

" at the end of the crisis. The CPME wants to be rather reassuring: anticipating a “

catching-up effect

” with the end of the

presidential

whatever it costs

”, François Asselin expected, at the beginning of June, around 70,000 failures over the year, “

which 'is not nothing but that is quite normal

”.

The disconnection of aid is done "

very gradually

", said the Minister of Labor on Thursday. Élisabeth Borne noted the "

positive signals

" emitted by the activity in France, and assured that the executive remained "

very attentive

" to the evolution of failures. "

We also have very good indicators on the recovery of economic activity, on hiring,

" she said. The prospect of an increase in bankruptcies is therefore not the most probable hypothesis.

Source: lefigaro

All news articles on 2021-07-08

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