Hauts-de-France: +8.7% of insolvency proceedings at the beginning of 2024

During the first two months of 2024, the Hauts-de-France region recorded 851 openings of receivership, direct liquidation, safeguard, and crisis exit treatment procedure. This result marks a significant increase of +8.7% compared to the same period of 2023.

Predominance of bankruptcy proceedings in insolvency proceedings

Of these 851 insolvency proceedings, 611 ended in judicial liquidation, representing an alarming liquidation rate of 71.8% compared to all the proceedings initiated. A trend that highlights the difficulties faced by many companies in the region.

Digging deeper into these figures, we find that 404 companies went into receivership or liquidation in January 2024, while this number increased to 435 in February 2024. Excluding the safeguard and post-crisis treatment procedures, the change remains significant with an increase of +9.67%.

Vulnerability of SMEs

In addition, 85% of the 839 receiverships or judicial liquidations concern companies with a turnover of less than €500,000, or for which the turnover is not known. This suggests that small and medium-sized enterprises (SMEs) are particularly vulnerable to current economic pressures.

Among the notable cases of proceedings in the Hauts-de-France region, 17 companies with a turnover of more than 2 million euros were forced to go into liquidation or receivership. These examples underscore that even larger companies are not immune to economic hardship. Regarding safeguard procedures, 11 openings were recorded in the region in January and February 2024, compared to 17 over the same period in 2023, i.e. a decrease in the number of openings of -35%. The most important proceedings concern a company in Business Services with a turnover of almost €20 million, and another in Distribution with a turnover of almost €6 million. By way of comparison, at the national level, in January and February 2024, 241 safeguard procedures are opened, compared to 224 over the same period in 2023, an increase of "only" +7.5%. However, as for Hauts-de-France, large SMEs are concerned.

Most Affected Sectors

Regarding the sectors of activity most impacted by these procedures in the first 2 months of 2024, Building and Public Works (BTP) and Personal Services are at the top of the list. In January 2024, 70 insolvencies (RJ and LJ) were recorded in the construction industry, followed by 106 insolvencies in February 2024. Similarly, Personal Banking recorded 60 insolvencies in January 2024 and 95 in February 2024.

These figures reflect the persistent challenges faced by businesses in a fluctuating economic environment. While some sectors of activity are hit harder than others, it is crucial for policymakers and economic actors to take appropriate measures to support struggling businesses and drive long-term economic growth.

Main insolvencies (receiverships or liquidations) in January and February 2024 in Hauts-de-France

Source: Ellisphere database