2023-10-18 04:10:13
According to Altares, the number of business failures increased by 23% in the third quarter year-on-year, while it jumped on average by 47% each quarter since the start of 2022.
Business insolvencies increased by 23% in the third quarter year-on-year, but the pace of this increase is slowing, according to a study by the specialist firm Altares published this Wednesday.
Thus, 10,979 liquidation, receivership or safeguard procedures were opened before the commercial courts from July to September: this is both a high since 2018, and the first slowdown since January 2022, according to Altares.
“Since the start of 2022, the number of failures has jumped by an average of 47% each quarter: such a high rate over such a long period is unprecedented, but let us remember that in 2021, defaults were also at their lowest in 35 years,” observes Thierry Millon, the director of studies at Altares. Thierry Millon is also counting on “more moderate increases” for the coming quarters.
The study, however, observes a constantly increasing proportion of failing SMEs and mid-sized companies (ETIs): 8.2% of the total in the third quarter, the highest level since the summer of 2010. These failures increased by 32% over a period of year. Those of very small companies are much more numerous (92% of the total), but their increase is limited to 22% over one year.
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In total, 37,280 jobs are threatened by these failures, the highest since the third quarter of 2016: some 21,800 in SMEs and 15,500 in VSEs. Companies less than 3 years old are the most vulnerable (+32% in failures over one year), followed by those aged 5 to 10 years (+31%). Those over 10 years old are average (+22%).
On the other hand, young companies 3 to 5 years old “created before Covid and which have been able to resist until then, are holding on” according to the study, with an increase in failures over one year limited to 13% in the third quarter. The sectors in greatest difficulty are still hairdressing-beauty institutes (+38%), with as many hairdressing salon defects in the first nine months of 2023 as during the entire year of 2015, “itself the worst year for the area”.
Fast food “signs a historic record” of failures (+28%). Those of real estate agencies have almost doubled (+98%, the highest in more than 10 years). Insolvencies are almost stable or decreasing in accommodation (-13%), inter-company trade (+4%) including construction materials (-27%), and agriculture (-5%) including -28% in breeding.
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