Business failures: nearly 17.500 cases in the second quarter of 2026, up 5,4%

Business failures remain at a high level in France. According to a study published on July 16, 2026 by Altares, 17.486 insolvency proceedings were opened in the second quarter, 5,4% more than during the same period in 2025.

Progress has slowed for several months, but the number of failures still exceeds pre-pandemic levels by nearly 40%, when quarterly totals remained below 13.000 procedures.

For the first half of 2026, Altares counts 37.700 failing companies, approximately 1.500 more than in the first half of 2025.

Two out of three procedures lead directly to liquidation.

Direct judicial liquidations remain by far the most common. Altares recorded 11.591 of them in the second quarter, representing a 4,8% year-on-year increase. They account for 66,3% of all proceedings initiated.

Reorganization proceedings are increasing more rapidly, by 7,1%, reaching 5.546 judgments. Their share of insolvencies now stands at 31,7%, compared to 31,2% a year earlier and 23,7% in 2022.

Safeguarding remains underutilized. With 349 initiations, this preventative procedure now represents only 2% of judgments, compared to over 3% in 2023.

The number of jobs at risk has fallen by 9,5%

Because business failures are heavily concentrated among small companies, their impact on employment is decreasing. Altares estimates that 58.830 jobs will be at risk in the second quarter of 2026, representing a 9,5% year-on-year decrease.

This total remains significant, but it is considerably lower than the 69.500 jobs threatened in the second quarter of 2024. It does not correspond to the number of job cuts actually observed: a safeguard or recovery procedure may allow the continuation of the activity and the preservation of all or part of the positions.

Companies with fewer than three employees are the focus of the difficulties

Companies with fewer than three employees account for 75% of insolvency proceedings. A total of 13.185 insolvencies were recorded in this category, an increase of 8,3% year-on-year.

Conversely, the situation is improving among companies with 3 to 19 employees. They accounted for 3.769 insolvencies, compared to 3.896 in the second quarter of 2025, representing a decrease of 3,3%. This category still represents 21,6% of all proceedings.

Companies with at least 20 employees remain in the minority, with 532 failures, an increase of 2,9%. Their situation, however, presents contrasting signs:

• 51 backups were opened, representing an increase of 27,5%;
• 352 judicial reorganizations were pronounced, an increase of 6,7%;
• 129 direct judicial liquidations were recorded, representing a decrease of 12,2%.

This reduction in direct liquidations may offer more opportunities to continue or resume business activity, without however prejudging the final outcome of the proceedings.

Strong growth among companies less than three years old

Companies created less than three years ago recorded 2.248 insolvencies, representing a 12,7% increase year-on-year. More than three-quarters of these proceedings resulted directly in judicial liquidation.

According to Altares, 93% of these failing startups are commercial companies, not micro-enterprises. The restaurant, automotive retail, and repair sectors are particularly well-represented. The building finishing trades also remain a significant presence, although failures are decreasing in this sector.

Companies aged 3 to 5 years remain the most numerous to default, with 4.913 proceedings, an increase of 5,1%. Companies aged 6 to 10 years account for 4.665 failures, representing a rise of 3,1%.

Older companies are not spared: 3.464 companies over 16 years old failed during the quarter, 5,6% more than a year earlier.

Construction is stabilizing, but property development remains in difficulty.

With 4.148 insolvencies in the second quarter of 2026, the construction sector recorded a 0,8% year-on-year decline. However, this stabilization masks different trends across various sectors.

Structural work is showing signs of improvement, as are some finishing trades. Public works, however, remain under pressure, while property development continues to suffer from weak new construction and investment.

In other sectors, Altares notes a 13,9% increase in business failures and a 15,7% increase in consumer services. The rises reached 17,2% in healthcare, social services, and education, and 21% in agriculture.

Six metropolitan regions recorded an improvement

Six regions in metropolitan France are seeing a decline in the number of business failures:

• Corsica counts 85 procedures, down 15%. The improvement comes mainly from Haute-Corse, while Corse-du-Sud is deteriorating;
• the Centre-Val de Loire region totals 479 failures, down 12,8%, with a marked improvement in Cher, Indre-et-Loire and Loir-et-Cher;
• Burgundy-Franche-Comté recorded 468 procedures, a decrease of 8,8%, driven by Doubs and Côte-d'Or;
• Normandy counts 608 failures, down 6,3%, thanks in particular to Seine-Maritime and Manche;
• Brittany totals 566 procedures, a decrease of 4,2%, mainly in Côtes-d'Armor and Morbihan;
• Provence-Alpes-Côte d'Azur declines by 1,1%, to 1.523 defaults, despite a sharp increase in Vaucluse.

Four regions remain below the national average

Business failures continue to rise in four regions, but at a rate lower than the national average of 5,4%:

• France's Island remains the most affected region, with 4.305 procedures, up 4,8%;
• New Aquitaine accounted for 1.704 failures, representing an increase of 4,9%;
• the Great East totals 1.103 procedures, up 3,1%;
• the Pays de la Loire are almost stable, with 767 failures and an increase limited to 1,5%.

A 22,9% increase in Auvergne-Rhône-Alpes

Tensions are more pronounced in three major regions. Occitanie recorded 1.533 bankruptcies, an increase of 6,8%, mainly driven by the Hérault department. Haute-Garonne, on the other hand, saw an improvement.

The Hauts-de-France region has 1.247 cases, an increase of 8,5%. The Nord, Pas-de-Calais and Aisne departments account for most of this increase.

The largest increase was observed in Auvergne-Rhône-Alpes, where 2.418 companies defaulted, 22,9% more than in the second quarter of 2025. The Rhône and Isère departments accounted for a large part of this increase, while the Ain and Cantal departments were the only two in the region to improve.

Significant progress in the overseas territories

Failures are also increasing in several overseas territories:

• 136 procedures in Guadeloupe, up 40,2%;
• 135 in Martinique, representing an increase of 17,4%;
• 58 in French Guiana, up 13,7%;
• 330 in Réunion, representing an increase of 32%;
• 7 in Mayotte.

Altares anticipates up to 35.000 new procedures in the second half of the year.

Altares believes that weak demand and persistently high operating costs will continue to put pressure on cash flow. Very small businesses and SMEs remain the most vulnerable due to their often limited financial flexibility.

According to the firm, the repayment of state-guaranteed loans and social security contributions now account for only a limited portion of the new insolvency proceedings. The difficulties are more likely linked to a sluggish economy, weak investment, and companies' financial decisions.

"The French economy is holding up but is running out of steam."

Thierry Millon, Director of Studies at Altares

Altares considers it likely that 34.000 to 35.000 new insolvency proceedings will be opened in the second half of 2026. This estimate is a forecast and will depend in particular on the evolution of activity, consumption, investment and the costs borne by companies.

Study methodology

Altares' statistics cover legal entities with a SIREN number: sole proprietorships, self-employed professionals, companies, and associations. A failure is recorded when a commercial court or a judicial court orders the opening of safeguard, reorganization, or liquidation proceedings.

The figures therefore relate to initial rulings and not to the final outcome of the proceedings. The full study and its tables are available on the Altares website.

Image illustrating the article via Depositphotos.com.