Corporate insolvencies in France continued to accelerate for a year in August, although they remained low compared to the period before the Covid-19 epidemic, the Banque de France said on Wednesday.
During the twelve-month period that ended at the end of August, 35,465 companies declared bankruptcy, or 26.5% more than in the same period that ended in August 2021.
Defaults have increased over the months: in June, the year-on-year rise was 15.9% compared to the same period in 2021, according to updated data from the Banque de France, after 24.1% in July.
However, “at the end of August, the number of company bankruptcies remained almost a third below the level of the period before Covid”, that is, a drop of 30.7% compared to 2019, the institution specifies.
Level still low compared to 2019
“Therefore, the failures remain at a still low level compared to the level before the Covid-19 crisis, but they are catching up compared to 2021,” he stresses.
“This apparent change over a year should, however, be interpreted with caution, as the number of defaults in 2021 remained particularly low due to the cash support measures still active as of that date and which allowed the state to be avoided. of fragile cessation of payments. companies”, he recalls.
By 2021, the number of company bankruptcies in France had dropped to around 27,000, down from more than 50,000 a year before the health crisis.
In August 2022, very small companies contributed significantly to insolvencies for twelve months compared to the previous twelve months (+51.7%), as well as small companies (+42.8%). The bankruptcies of medium-sized companies were reduced by 33.3%.
By sectors, accommodation and restaurants is the most represented (+40.9% in one year), ahead of industry and after transport and storage.
Source: BFM TV
