Business failures - France 2021Oct
Published on 10 November 2021
Corporate bankruptcies remain at a historically low level
- By the end of October 2021, the number of corporate bankruptcies over one year (between November 2020 and October 2021) was 26,907. This figure marks a decrease in the number of corporate bankruptcies of 22.1% compared to the aggregated number of bankruptcies recorded between November 2019 and October 2020 (see Tables A and B, and Chart 2).
- The fall can be observed for most sizes of companies and in most sectors of activity, including those most affected by restrictive measures related to the health situation, including accommodation and food service activities ( - 44.1% over one year) and wholesale and retail trade ( - 23.9% over one year). The number of corporate bankruptcies has thus remained at a historically low level (Chart 1).
- When comparing the number of bankruptcies over one year at the end of October 2021 with the end of October 2020, the calculation period includes the first months of the Covid-19 crisis which led to a reduction in the number of corporate bankruptcies due to both the lockdown which affected the functioning of commercial courts, and the adaptation of regulations which temporarily granted additional time both to assess the state of insolvency and to report it. Thus, if we compare the figures for the end of October 2021 to the number of bankruptcies recorded over one year at the end of October 2019, a period entirely prior to the health crisis, the decrease in the number of bankruptcies registered at the end of October 2021 was - 48.1%.
- Despite the gradual abandonment of support measures, some of which have been retained in the crisis exit plan, bankruptcies figures for the last few months of 2021 remain lower than those observed in 2019 and 2020 (see Figure 3). Therefore, at this stage, there is no sign of a resumption of bankruptcies or of a wave of insolvencies in the future.
To find out more: data on business start-ups are reported by the French National Institute of Statistics and Economic Studies (INSEE): Business start-ups on the INSEE's website
A - Corporate bankruptcies by sector![]()
Bankruptcies in number of legal units, year on year change (%)
| Aggregate over the last 12 months (a) (gross data) | ||||||||
| Sep. 19 | Sep. 20 | Sep. 21 | Sep. 21/Sep. 20 | Sep. 21/Sep. 19 | Oct. 21 prov. | Oct. 21/Oct. 20 | Oct. 21/Oct. 19 | |
| Business sector | ||||||||
| Agriculture, forestry and fishing (AZ) | 1,381 | 1,046 | 1,082 | 3.4% | -21.7% | 1,004 | -1.3% | -26.8% |
| Industry (BE) | 3,693 | 2,459 | 1,808 | -26.5% | -51.0% | 1,783 | -23.9% | -49.5% |
| Construction (FZ) | 11,394 | 7,476 | 5,827 | -22.1% | -48.9% | 5,788 | -16.6% | -48.6% |
| Wholesale and retail trade; repair of motor vehicles and motorcycles (G) | 11,250 | 8,083 | 5,838 | -27.8% | -48.1% | 5,752 | -23.9% | -48.6% |
| Transportation and storage (H) | 2,073 | 1,479 | 1,146 | -22.5% | -44.7% | 1,148 | -17.3% | -44.9% |
| Accommodation and food service activities (I) | 7,073 | 5,002 | 2,806 | -43.9% | -60.3% | 2,646 | -44.1% | -62.4% |
| Information and communication (JZ) | 1,298 | 979 | 860 | -12.2% | -33.7% | 848 | -10.1% | -33.6% |
| Financial and insurance activities (KZ) | 1,119 | 803 | 646 | -19.6% | -42.3% | 627 | -18.3% | -44.1% |
| Real estate activities (LZ) | 1,644 | 1,223 | 1,254 | 2.5% | -23.7% | 1,213 | 2.2% | -25.1% |
| Advisory & Business support activities (MN) | 5,990 | 4,264 | 3,574 | -16.2% | -40.3% | 3,517 | -14.3% | -40.4% |
| Education, human health and social work services, Arts, entertainment and recreation, Other service activities (P to S) | 5,332 | 3,590 | 2,604 | -27.5% | -51.2% | 2,512 | -26.9% | -52.1% |
| All firms (b) | 52,474 | 36,533 | 27,518 | -24.7% | -47.6% | 26,907 | -22.1% | -48.1% |
Source: Banque de France - database: Fiben. Data available in early November 2021: final for September, provisional for October.
Calculation : Banque de France - Companies Directorate - Companies Observatory
a Aggregate number of corporate bankruptcies over the past 12 months compared to the same aggregate one year and two years ago
b The line « All firms » includes legal units whose business sector is not known
Calculation : Banque de France - Companies Directorate - Companies Observatory
a Aggregate number of corporate bankruptcies over the past 12 months compared to the same aggregate one year and two years ago
b The line « All firms » includes legal units whose business sector is not known
B - Corporate bankruptcies by firm size![]()
Bankruptcies in number of legal units, year on year change (%)
| Aggregate over the last 12 months (a) (gross data) | ||||||||
| Sep. 19 | Sep. 20 | Sep. 21 | Sep. 21/Sep. 20 | Sep. 21/Sep. 19 | Oct. 21 prov. | Oct. 21/Oct. 20 | Oct. 21/Oct. 19 | |
| Size | ||||||||
| SME, among them | 52,447 | 36,490 | 27,487 | -24.7% | -47.6% | 26,881 | -22.1% | -48.1% |
| Micro-enterprises and unknown firm's size | 49,957 | 34,535 | 25,991 | -24.7% | -48.0% | 25,399 | -22.1% | -48.6% |
| Very small firms | 1,542 | 1,157 | 925 | -20.1% | -40.0% | 919 | -17.2% | -37.9% |
| Small firms | 688 | 583 | 413 | -29.2% | -40.0% | 407 | -28.5% | -38.5% |
| Medium-size firms | 260 | 215 | 158 | -26.5% | -39.2% | 156 | -23.9% | -40.7% |
| ISE - Large Firms | 27 | 43 | 31 | -27.9% | 14.8% | 26 | -45.8% | 4.0% |
| All firms | 52,474 | 36,533 | 27,518 | -24.7% | -47.6% | 26,907 | -22.1% | -48.1% |
Source: Banque de France - database: Fiben. Data available in early November 2021: final for September, provisional for October.
Calculation : Banque de France - Companies Directorate - Companies Observatory.
a Aggregate number of corporate bankruptcies over the past 12 months compared to the same aggregate one year and two years ago.
Calculation : Banque de France - Companies Directorate - Companies Observatory.
a Aggregate number of corporate bankruptcies over the past 12 months compared to the same aggregate one year and two years ago.
C - Changes in corporate bankruptcies![]()
1 - Number of bankruptcies
Aggregate number of bankruptcies over the past 12 months
From Dec. 1991 to September 2021 (+ October 2021 provisional)
Aggregate number of bankruptcies over the past 12 months
From Dec. 1991 to September 2021 (+ October 2021 provisional)
2 - Change in bankruptcies
Year-on-year change in the 12-month aggregate
From Dec. 1991 to September 2021 (+ October 2021 provisional)(in %)
Year-on-year change in the 12-month aggregate
From Dec. 1991 to September 2021 (+ October 2021 provisional)(in %)
3 - Monthly number of bankruptcies
From Jan. 2019 to September 2021 (+ oct. 2021 provisional)
From Jan. 2019 to September 2021 (+ oct. 2021 provisional)
4 - Loan amounts of bankrupt non-financial firms over loan amount of all firms - broken down by firm size
Aggregate over the past 12 months
From Dec. 2006 to September 2021 (+ oct. 2021 provisional)
(in %)
Aggregate over the past 12 months
From Dec. 2006 to September 2021 (+ oct. 2021 provisional)
(in %)
Source: Banque de France - database: Fiben. Data available in early November 2021: final for September, provisional for October.
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