Tuesday, January 31, 2017

The failures of companies in sharp decline by 2016 – Challenges.fr

The number of business failures has fallen from 8.3% in 2016 after a very good fourth quarter, the improved economic environment, taking advantage particularly in the building sector, trade and commerce, according to a study by the firm Altares published Tuesday, January 31.

On the whole of the year, 57.844 companies have been placed in backup procedure, recovery or judicial liquidation, against 63.008 a year earlier, says the study. The only last quarter of 2016, compared to the same period of 2015, is an improvement of 12%, just under the threshold of the 14,000-procedures (13.971) that had not been approached since the end of 2007 (13.662).

“Since 2009, the hope of return under the threshold of 15.000 business failures over the last quarter, and 60,000 on the year seemed just out of reach. 2016 has yet made!”, highlights Thierry Millon, director of research at Altares, quoted in a press release.

“the end of The year at least 58,000 failures, a volume comparable to that observed in January 2009. Of course, it is still 8,000 too, compared to 2007″, but this “will return the number of jobs threatened by these collective procedures to 200,000 against 260.000 in 2009,” he adds.


According to Altares, all categories of businesses have taken advantage of this positive momentum. Starting with the smallest businesses, those employing less than three employees, who account for three-quarters of the failures.

By sector, the decline was particularly marked in the building, which focuses on traditionally one-quarter of business failures: the number of judgments of openings has declined from 12.7% in construction, with 12.5% and in the structural work and -12,3% in public works.

The trade has offered a favourable trend (with-9.5%), despite “tensions in the retail activities, such as maintenance and repair of motor vehicles (+5%)”, but also “the general power supply (+11%),” details Altarès.

The failures have also declined from 8.3% in industry and 7% in the road transport of goods sector, pulled by the freight of proximity (-10%), unlike that of passengers (+31%). This last increase, according to Altarès, is mainly explained by the increase in desdéfaillances in the taxi sector: the latter have accounted for 230 defaults in 2016, up from 175 in 2015 and 118 in 2014.

agriculture continues to be in addition to the variance of the overall dynamic, with a number of failures increased by 4% and 8% on only the activities of livestock.

(With AFP)


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