Business failures in France: revealing figures

By the end of the first quarter of 2025, business insolvencies in France had risen by 11.8% year-on-year, a less marked increase than the 18% recorded in 2024. This trend reflects a relative stabilization, although the situation remains alarming, particularly for certain key sectors.

Sectors struggling with business failures

Construction and public works in the front line: with almost 28% of insolvencies, the construction and public works sector remains heavily affected. However, the limited increase of +16.4% in 2025, compared with +26% the previous year, offers a slight respite.
Contrasts in services: while IT and electronics (+18.8%) and business services (+12.9%) recorded significant increases, sectors such as distribution (+3.3%) showed greater resilience despite economic and regulatory challenges.

Regions most affected by business failures

Île-de-France: with an increase of 18.1%, this region remains the most affected, accounting for nearly a quarter of national insolvencies.
Normandie and Pays de la Loire: these regions recorded increases of 22.7% and 14.8% respectively, signalling tensions in their local economic fabric.
Overseas: in Mayotte (+50%), the effects of cyclone Chido are worsening an already fragile economic situation, while Réunion is struggling to overcome its structural challenges.

Preventing failures: mechanisms to exploit

Despite a slight increase in safeguard procedures (+0.4%), these measures remain an essential lever for restructuring companies before they reach a critical point. They help maintain jobs and preserve the economic fabric.

Outlook and resilience: preparing for the future

In a context that remains under pressure, French companies will need to demonstrate innovation and agility to overcome these challenges. This period could nevertheless be an opportunity for lasting transformation, if public and private efforts converge effectively.