Reorganization and liquidation, where do we stand?
The decline over 12 months in the number of business failures (receiverships and direct judicial liquidations), compared to the previous period, is now limited, with an 18.1% drop at the end of November 2021. In the context of the gradual end of aid, the number of business failures over the last three months (September, October, November) remains below that recorded in 2020. 2021 should therefore end with a slightly lower level than the previous year.
Regionally, some regions seem to be suffering a little more, such as Centre-Val de Loire, Ile-de-France and PACA, with a decrease in the number of business failures below the national average.
From a sectoral point of view, the trend reversal resulting in an increase in insolvencies compared to 2020 is confirmed for Agriculture and Fishing (+4.3%), Metals (+5.8%) and Pharmaceuticals (+3%). The changeover is currently underway in IT and electronics (+0.8%) and telecommunications.
In November 2021, the 20 largest insolvencies in terms of turnover included a large number of building professionals (construction, finishing work and trade), confirming the major difficulties experienced by this sector (a decrease in building permits, rising prices and difficulties in supplying raw materials are the main causes).
In addition, despite state aid targeted at small businesses, VSEs still account for 90% of bankruptcies, especially those less than three years old, as they are too new and therefore too fragile, with a compromised financial situation.
What about safeguard procedures?
The decline is now also slowing down compared to 2020, with -11.7% in the number of safeguard procedures. In the absence of large companies, as was the case in 2020 (e.g. FLUNCH), the average number of employees and the average turnover of the entities involved in a safeguard procedure are also decreasing.
In the regions, a clear upturn in the use of safeguard procedures was noted in Normandy (+26.7%) and in Hauts-de-France (+9.1%).
From a sectoral point of view, we find the Food industry (a number of procedures multiplied by 2), Metals (+43%), IT & Electronics (+33.3%), Wood, Paper & Cardboard & Printing, as well as Pharmaceuticals (+12.5% each), Consumer Goods (+4.2%) and finally Agriculture & Fishing (+2.8%).
