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Business failures 2019Aug

Published on 10/10/2019
In July 2019, the number of corporate bankruptcies increased by 1.0% year-on-year
  • At the end of July 2019, the aggregate number of corporate bankruptcies over the last 12 months amounted to 53,508, up by 1.0% compared to July 2018 (see tables A and B and charts 1 and 2).
  • The aggregate number of bankruptcies over the past 3 months decreased compared to the same aggregate 3 months ago (-2.5%).
Over the past 12 months, the evolution of corporate bankruptcies varies across sectors
  • The advisory and business support activities, the transportation sector, and the financial and insurance activities recorded the strongest increases in bankruptcies (+11.4%, +7.2% and +5.5% respectively, compared to July 2018). Bankruptcies also increased substantially in other sectors, particularly in the education, human health and other services sector (+2.1%), agriculture (+1.5%), and the accommodation and food service activities (+1.2%).
  • However, over the same period, corporate bankruptcies decreased in the information and communication (-5.1%), real estate (-2.7%), wholesale and retail trade ( -1.8%), construction (-1.0%) and industry (-0.6%) sectors.
In July 2019, bankruptcies increased essentially for SMEs
  • Bankruptcies increased for SMEs as a whole (+1.0%), despite a decrease for Very small firms (-6.4%). They decreased for Intermediate-sized enterprises (ISEs) and Large firms (- 9 bankruptcies over 12 months see table B).
At the end of July, for firms filling bankruptcy over the past 12 months, outstanding loans amount to 0.3% of total outstanding loans reported at the Banque de France's Central Credit Register. However, according to provisional data for August 2019, this figure is likely to increase significantly due to the bankruptcy of a corporate bearing a significant part of its group's debts (see chart 3).

The aggregate number of corporate bankruptcies decreased by 0.8% at the end of August 2019 compared to August 2018, according to provisional data(see tables A and B and chart 2).

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) Quater to quater sa/wda (bc) Monthly data sa / wda (c)
July 18 July 19 July 19/July 18 Aug. 19 prov. Aug. 19/Aug. 18 July 19 May 19 June 19 July 19
Business sector
Agriculture, forestry and fishing (AZ) 1,413 1,434 1.5% 1,414 -0.5% 7.3% 126 120 121
Industry (BE) 3,726 3,703 -0.6% 3,706 -0.3% -10.6% 267 275 253
Construction (FZ) 11,697 11,582 -1.0% 11,532 -1.5% 2.9% 866 984 953
Wholesale and retail trade; repair of motor vehicles and motorcycles (g) 11,541 11,338 -1.8% 11,259 -2.1% -1.5% 883 957 886
Transportation and storage (H) 1,945 2,085 7.2% 2,070 6.6% -10.8% 172 172 147
Accommodation and food service activities (I) 7,138 7,221 1.2% 7,156 0.1% -4.4% 512 604 578
Information and communication (JZ) 1,344 1,275 -5.1% 1,272 -4.7% 6.1% 101 108 117
Financial and insurance activities (KZ) 1,050 1,108 5.5% 1,105 4.8% 1.6% 92 85 99
Real estate activities (LZ) 1,715 1,669 -2.7% 1,666 -2.6% 3.3% 129 176 129
Advisory & Business support activities (MN) 5,670 6,319 11.4% 5,935 -1.0% -8.7% 480 490 464
Education, human health and social work services, Arts, entertainment and recreation, Other service activities (P to S) 5,282 5,394 2.1% 5,350 1.3% -2.1% 454 427 440
All firms (d) 52,970 53,508 1.0% 52,839 -0.8% -2.5% 4,129 4,447 4,250
Source: Banque de France - database: Fiben. Data available at end-September 2019
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 ago
b Aggregate number of corporate bankruptcies over the past 3 months compared to the same aggregate three months ago
c sa : seasonally adjusted - wda : working day adjusted
d 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) Quarter to quarter sa/wda (bc) Monthly data sa / wda (c)
July 18 July 19 July 19/July 18 Aug. 19 prov. Aug. 19/Aug. 18 July 19 May 19 June 19 July 19
Size
SME, among them 52,925 53,472 1.0% 52,801 -0.8% -2.5% 4,128 4,444 4,248
Micro-enterprises and unknown firm's size 49,995 50,619 1.2% 49,966 -0.6% -2.7% 3,894 4,214 4,028
Very small firms 1,776 1,662 -6.4% 1,652 -6.6% -5.5% 130 130 121
Small firms 863 874 1.3% 864 0.2% -5.5% 70 71 62
Medium-size firms 291 317 8.9% 319 9.6% 9.9% 32 17 31
ISE - Large Firms 45 36 -20.0% 38 -11.6%
All firms 52,970 53,508 1.0% 52,839 -0.8% -2.5% 4,129 4,447 4,250
Source: Banque de France - database: Fiben. Data available at end-September 2019
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 ago
b Aggregate number of corporate bankruptcies over the past 3 months compared to the same aggregate three months ago
c sa : seasonally adjusted - wda : working day adjusted
C - Changes in corporate bankruptcies
1 - Number of bankruptcies
Aggregate number of bankruptcies over the past 12 months
From Dec. 1991 to July 2019
2 - Change in bankruptcies
Year-on-year change in the 12-month aggregate
From Dec. 1991 to July 2019 (+August 2019 provisional)
(in %)
3 - Loan amounts of bankrupt non-Financial firms over loan amount
of all firms
Aggregate over the past 12 months
From Dec. 2006 to July 2019 (+ August 2019 provisional)
(in %)
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 July 2019 (+ August 2019 provisional)

(in %)
Source: Banque de France, Companies Directorate, Data available at end-September 2019

More information on: methodology, time series, calendar
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Corporate bankruptcies
STAT INFO - August 2019
Contact: GPS.support@banque-france.fr

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Business failures - France
  • Published on 10/10/2019
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Published on Thursday, October 10, 2019