More than 6,500 insolvency proceedings were opened in the second quarter of 2021, an increase of 14.2% compared to the same period in 2020, according to the latest figures released by Altares.
6587 business failures in the second quarter of 2021, this is an increase of 14.2% compared to the same period of the previous year. However, the volume of judgments remains two times lower than the level before Covid, according to estimates by Altares.
The rate of direct liquidations remains high
Over the period, 165 safeguard procedures were launched, when 1,495 companies were placed in receivership (+ 14.7% compared to 2020) and 4,927 direct judicial liquidations (ie + 14.5% compared to 2020). The rate of direct liquidations (75%) stands above traditional values (68%), confirming the fragility of companies appearing in court.
On the other hand, the number ofjobs threatened passes below the 20,000 threshold. There were more than 40,000 a year ago. A phenomenon largely signified by the failures of several large retail chains and particularly of clothing.
Small businesses are the most affected
VSEs with less than 6 employees represent 9 failures out of 10. 89% of these companies recorded an increase of 18% compared to the second quarter of 2021. Companies with 10 to 19 employees also remain under pressure, but to a lesser extent. As for SMEs with 50 or more employees, a decline has been observed. There is less to worry about on their side.
Even if the most difficult period seems to have been passed, the prudence remains the key word and particularly for small entities. These have redoubled their efforts in terms of adaptability during the period, allowing them to gain in competence. While these figures show a wind of optimism, a persistent epidemic return could rekindle concerns on the eve of the disconnection of financial infusions…
–
–
