Nearly 70.000 businesses failed in 2025, including more than 19.000 in the fourth quarter.

The year 2025 ended with record levels of business failures. With 19.024 proceedings initiated in the last quarter, the peak of 70.000 insolvencies—including safeguards, reorganizations, and liquidations—was almost reached. While the increase in bankruptcies continued, its pace slowed: +1,7% in the fourth quarter compared to +10% in 2024 and +38% in 2023 over the same period.

Tensions remain very high for organizations with at least 100 employees. The number of business failures is at its highest level (236 this year) and continues to accelerate sharply (+18,6%). Among these major failures, the manufacturing and social sectors are overrepresented, accounting for 21% and 12% of the openings, respectively. This situation is having a significant impact on employment. 267.000 employees and managers see their jobs threatened by the end of 2025, 11.000 more than a year ago. However, several positive signs are emerging and suggest – without being naive – a possible improvement by 2026.

The positive signs and "pleasant surprises" of this 4th quarter

• Decline in direct judicial liquidations;
• Decrease in defects in structures with 3 to 99 employees;
• Companies aged 3 to 10 years are holding up (-0,1%);
• Construction (-8%) and road transport (-16%) were solid, while clothing retail trade suffered (-1%);
• The regions of Normandy, Hauts-de-France, Grand-Est, PACA and AURA have moved into the green zone;
• The number of jobs at risk stabilizes at the end of the year.

On the challenges front at the end of this 4th quarter

• Historical record for procedures for a T4;
• Increasing claims rates among both the smallest and largest companies;
• Companies older than 15 years are still vulnerable;
• Defects are still increasing rapidly for industrial mechanics (+68%), taxis (+33%), viticulture (+18%), motor trade (+14%) or catering (+8%);
• Corsica, Pays-de-la-Loire and the overseas territories are heavily in the red.

For Thierry Millon, Director of Altares Studies: “The French economy in 2025 operated within a paradoxical framework, combining controlled inflation and sluggish growth with strained public finances in a complex geopolitical context. This combination created a climate of significant uncertainty for businesses, particularly SMEs already struggling with rising logistics and energy costs. In this context, the most vulnerable companies are attempting to leverage inter-company payment terms to compensate for shrinking cash flow. The average payment delay reached its highest level since the Covid-19 pandemic, exceeding 14 days and significantly increasing commercial risk. The year thus ended with 70.000 business failures, a record high which, beyond the challenging economic climate, raises questions about the financial (insufficient capital), logistical (unreliable supply chain), or structural (incomplete digitalization) weaknesses of the French entrepreneurial ecosystem.”

19.024 bankruptcies recorded in the 4th quarter, an all-time record for Q4

As of December 31, 2025, 19.024 insolvency proceedings were initiated over the previous three months. This is an all-time high for this period: 4.000 more judgments than the average for the fourth quarter of the last 15 years. For the year as a whole, we are approaching an unprecedented peak of 70.000 defaults (69.957: +3,1%).

This volume is unprecedented, but it reflects a trend of significant slowdown over the past several months. The increase in the number of defaults in Q4 2025 is less than 2% (+1,7%) after exceeding +10% in Q4 2024, +38% in 2023, and +48% at the end of 2022.

Bankruptcies decline at the end of the year

Another positive sign is that, although two-thirds (66%) of the judgments handed down concern direct judicial liquidations (LJ), their number fell by 1,3% in the 4th quarter, to around 12.500 procedures.

Over the year, with just over 47.000 judgments, liquidations show a slight increase of 0,9%.

Conversely, the number of court-ordered reorganizations (RJ) increased by 8,6% in Q4 2025, reaching 6.006 proceedings. The trend is identical for the year. A total of 21.300 court-ordered reorganizations are expected in 2025.

Safeguard procedures stabilized at 432 openings in the 4th quarter and slightly above 1.540 for the year.

The crisis exit procedure scheme remained underutilized: 99 in 2025 compared to 100 in 2024. Established in 2021 and running until June 2023 to enable companies with fewer than 20 employees to cope with the economic consequences of the Covid context, the procedure was reactivated by the 2023-2027 Ministry of Justice Orientation and Programming Law; this for two years from November 22, 2023 until November 21, 2025 inclusive.

The fragility of SMEs and mid-sized companies is confirmed and weighs heavily on employment.

The situation for SMEs and mid-sized companies with at least 100 employees continues to deteriorate. The number of insolvencies is rising sharply compared to the national average. In Q4, no fewer than 58 SMEs and mid-sized companies with at least 100 employees defaulted. This quarterly increase of 18,4% (vs. 1,7% overall) confirms the annual trend of +18,6% (vs. 3,1% overall), for a total of 236 insolvencies projected for 2025.

Under these conditions, the number of jobs at risk exceeds 267.000 in 2025 and 68.000 in the 4th quarter.

One positive point to note, however, is that these SMEs and mid-sized companies are better at anticipating their difficulties, and 90% of them manage to avoid liquidation. They thus benefit from continued operations thanks to restructuring (75%) or safeguard proceedings (14%).

Three major sectors are overrepresented among these large-scale business failures. First, the manufacturing industry: it accounts for 21% of failures, while representing less than 4% of all failures globally. Second, the social sector: 12% of bankruptcies involving at least 100 employees, compared to 2% of all proceedings.

Finally, administrative services to businesses, which represent 19% (46) of major defaults against 7% of all defaults.

At the opposite end of the spectrum, smaller businesses with fewer than 3 employees also saw a greater number of failures in the fourth quarter. 14,162 businesses were subject to insolvency proceedings at the end of the year, representing a 5% increase compared to Q4 2024. For the year as a whole, this represents a 4% increase.

The picture is more encouraging for companies with 3 to 99 employees. 4.800 insolvencies were recorded during the 4th quarter, a decrease of 7% compared to the same quarter of 2024. For the whole of 2025, the overall increase is 1% for these structures, with 18.440 judgments.

Established businesses remain fragile, while newer ones are struggling.

3.600 companies established for more than 15 years defaulted in the 4th quarter, an increase of 5,9% compared to a trajectory of +8,8% (13.900) for the full year.

The youngest companies, those less than three years old, are only slightly less numerous (3.138) in the fourth quarter and also show an above-average trend for the year: +7,2% vs. 3,1%. The fourth quarter is, however, more encouraging with a moderate increase of +2,2% (vs. +1,7% overall).

Self-employed individuals are under pressure, particularly those in the taxi and home delivery sectors.

Whether established or new, commercial companies account for 82% of business failures, totaling 57.240 in both 2024 and 2025. While sole proprietorships (including self-employed individuals) represent less than 15% of failures (9.600), their situation is deteriorating dramatically, with a 25% increase in proceedings year-on-year. This phenomenon is particularly evident in the transportation sector, where figures are skyrocketing (+120%), and more specifically for taxis (+137%) and home delivery of parcels and meals (+255%).

Construction is improving and retail is recovering, but services, manufacturing, agriculture, and health & social care remain fragile in Q4

CONSTRUCTION: the sector is driving the overall trend favorably

After a positive trend for the year (-3,2%), the sector accelerated its recovery in the last quarter. Construction, which accounts for a quarter of all proceedings (25%), recorded 4.696 defaults in the fourth quarter, with over 3.800 of these in building activities alone. This represents an 8,1% decrease compared to the same quarter in 2024. This positive figure was driven by structural work (-9%), where judgments declined by 10% in masonry and 11% in single-family homes. In finishing work (-2%), the trend was more moderate, hampered by poor figures in plastering (+10%), framing (+10%), and roofing (+17%).

Public works (-13%) are trending well.

Real estate (-21%) is recovering significantly in real estate agencies (-16%) and even more so in real estate development (-74%).

RETAIL: Retail activity down slightly

Trade (+1,6%) was in line with the overall trend (+1,7%) in the fourth quarter (3.734 defaults), driven by the strong performance of the retail sector, which accounts for more than half of the sector's defaults. Indeed, retail activities showed a slight decline (-0,7%), admittedly modest but encouraging. DIY and home improvement posted the best performance (-13%), followed by clothing (-5%). Personal care and optical activities, particularly optical services, fell sharply (+28%).

The vehicle trade and repair sector remained fragile in the fourth quarter (+7,4%). Motor vehicle sales declined by 14% and repairs by 8%.

The situation remains tense for wholesalers (+2%), particularly in construction materials (+13%). The trend is improving in wholesale textiles (-9%).

INDUSTRY: still complicated in manufacturing

Business failures in the manufacturing sector (1,185) increased more rapidly in the fourth quarter (+4,7%) than over the year as a whole (+2,7%). This trend was driven more by the manufacturing industry (+6,4%) than by the food processing sector (+2,2%), which held up well, supported by bakeries (-5%). In manufacturing, the changes were severe in clothing production (+20%) and industrial machinery (+68%), but favorable for printing (-21%) and metal structure manufacturing (-24%).

SERVICES: Business services under strain; consulting and communication still fragile

In business services (2.690), the 5% increase is primarily linked to administrative activities (+8,6%), particularly cleaning (+17%) and short-term car rental (+27%). Private security (-4%) is recovering, and landscaping services are attempting to hold their own (-1%). For scientific and technical services, the growth (+1%) is encouraging, even though business consulting is unable to reverse the trend (+4%).

In IT services (-5,2%), the outlook is better for programming (-16%), while consulting is struggling more (+12%). Information and communication activities (+7,2%) are particularly strained in film production roles, whether targeting television (+63%), advertising (+88%), or cinema (+19%).

TRANSPORTATION: the risk lies more with B2C, home delivery is plummeting

931 carriers went bankrupt at the end of the year, a 4,4% increase, with significant disparities. Road freight transport (-16,3%) held up remarkably well, whether for local freight (-15%) or long-distance transport (-21%). The removals sector, on the other hand, continued to struggle (+32%).

Other transport activities are falling sharply (+38,8%) weighed down by defaults in taxis (+33%) and home delivery of parcels or meals (+220%).

Hospitality: only the hotel industry is holding on

2.119 food establishments fell in Q4, and the pace is not slowing down (+8%); a deterioration observed in both traditional (+7%) and fast food (+8%) restaurants.

Accommodation (+5%) is holding up in hotels (-19%) but is suffering in short-term tourist accommodation (+36%).

Five regions have turned green in this last quarter

Normandy recorded a very strong final quarter and an encouraging outlook for 2025. A year earlier, the region had the steepest decline in France (+31%). In the fourth quarter of 2025, it showed the fastest improvement (-12,1%; 760 insolvencies). For 2025, Normandy is projected to have 47 safeguards and 2.785 receivership or liquidation proceedings initiated, an increase of 1,6% compared to 3,2% for the country as a whole. The number of insolvencies is very high; one has to go back to 2015 (2.796 receivership/liquidation proceedings) to find a year with a higher number of insolvencies.

The Hauts-de-France region climbed to second place in the fourth quarter with 1.351 business insolvency proceedings, a decrease of 3,4% compared to the same quarter in 2024. For the entire year, the region recorded 87 safeguards and 4.951 judicial reorganization or liquidation proceedings, an increase of 2,1%, but below the national average of 3,2%. The level of business failures remains very high: one has to go back to 2015 to find a comparable level.

The Provence-Alpes-Côte d'Azur region is performing well in the last quarter of 2024 and for the year as a whole. The near-stability in the number of insolvencies observed at the end of 4 continued into the fourth quarter of 2025, where the region recorded the third-best performance nationally with a 2,8% decrease in insolvencies (1.708 insolvency proceedings). For the entire year, the region saw 97 safeguard proceedings and 6.329 judicial reorganization or liquidation proceedings, a decrease of 5,5% compared to a 3,2% increase for the country as a whole. However, the level of insolvencies remains high; one has to go back to 2015 to find a comparable volume.

The Auvergne-Rhône-Alpes region saw an improvement at the end of the year but remains on track for a record-breaking 2025. In the fourth quarter of 2025, the trend improved significantly with a decrease of 2,7%. However, despite this better end to the year, the 2025 claims experience remains very high, with just over 200 backups, the same as in 2024, but 8.116 RJ/LJ (returns/losses) recorded, a record number.

The Grand Est region saw a decline in defaults in the fourth quarter and is stabilizing for 2025. While in the fourth quarter of 2024, the region managed to contain the increase in defaults to +2,2%, a year later, the Grand Est is doing more than just holding its own: the number of insolvency proceedings initiated has fallen by -2,1%. This year-end performance allows for near-perfect stability for the whole of 2025, with 4.539 insolvencies, including 4.439 receiverships/liquidation proceedings. This number remains significant, being the highest since 2016.

Five regions kept the increase in defaults below 6% during the 4th quarter

The Centre-Val de Loire region stabilized its insolvency rates at the end of the year. The region performed better than in the fourth quarter of 2024 (+3,7% increase in insolvencies): a year later, the number of new insolvency proceedings stabilized at the end of the year. This Q4 performance helped limit the overall increase for 2025 to 2,6%. For the full year, the region recorded 50 safeguard proceedings and 2.244 receivership/liquidation proceedings, the highest number since 2015.

Occitanie also managed to stabilize the number of defaults in the fourth quarter. In the fourth quarter of 2024, the region recorded a 5,8% increase in defaults. A year later, the number of insolvency proceedings initiated remained stable (up 0,4%) at the end of the year in Occitanie. Despite this Q4 performance, defaults are projected to increase by a further 3,6% in 2025. The region has 178 safeguard proceedings and 6.059 judicial reorganizations/liquidation proceedings, the highest number since 2013.

The Île-de-France region maintained its 2% growth rate in the last quarter and for the whole of 2025. In the fourth quarter of 2024, the region still experienced a sharp increase of 17,8% in defaults. A year later, the pace of insolvency proceedings (2%) is close to the national average (1,7%). For the year as a whole, the region recorded 205 safeguard proceedings and 16.237 receivership/liquidation proceedings, a record number representing a 2% increase.

Brittany stabilized its default rate in the fourth quarter. In the fourth quarter of 2024, the region saw a 3,7% increase in defaults. A year later, the number of insolvency proceedings initiated in Brittany increased only slightly less rapidly (3,2%). Under these conditions, the increase is comparable in 2025 (3,1%). For the year as a whole, the region recorded 77 safeguard proceedings and 2.523 judicial reorganizations (RJ/LJ), the highest volume since 2015.

The Nouvelle-Aquitaine region saw a slowdown in defaults in the fourth quarter, but still maintains a sharp increase in insolvencies projected for 2025. In the fourth quarter of 2024, the region experienced a surge of 17,4% in defaults. A year later, the number of insolvency proceedings initiated slowed (up 5,4%). For the year as a whole, the increase was still significant (up 9,5%). Nouvelle-Aquitaine recorded 291 safeguard proceedings and 6.470 judicial reorganizations/liquidation proceedings, a record high.

A difficult end to the year for four regions

The Bourgogne-Franche-Comté region limited its decline in 2025, despite a difficult end to the year. In the fourth quarter of 2024, the region stood out with a significant decrease in business failures (-5,3%), but this performance could not be replicated a year later. During the fourth quarter of 2025, defaults surged by 11,1%. For the year as a whole, Bourgogne-Franche-Comté recorded 53 safeguards and 2,259 receiverships/liquidation proceedings, the highest number since 2015 and an increase of 3,4%, slightly above the national average of 3,2%.

In the Pays de la Loire region, despite a difficult end to the year, the decline remains contained in 2025. In the fourth quarter of 2024, the region was already in the red (+8%), but a year later the decline accelerated further (+22%). For the year as a whole, the region recorded 89 backups and 3.174 RJ/LJ (remote access/legal access), a volume exceeding the 3.000 RJ/LJ recorded in 2013 and 2015.

Corsica, for its part, experienced a difficult final quarter. In the fourth quarter of 2024, the region was performing very well (-16,1%), but a year later, this performance was not sustained, and Corsica saw a sharp decline in the fourth quarter of 2025 (+26%). For the year as a whole, the region recorded 9 safeguards and 468 receiverships/liquidation proceedings, a record high and a significant increase of 14,1%, well above the national average (+3,2%).

In the French overseas territories, only Réunion is in the green. In the fourth quarter of 2024, the overseas territories had contained the increase in defaults to +6%, but a year later, the situation deteriorated sharply in the fourth quarter of 2025 (+24,1%). For the year as a whole, the overseas territories recorded 52 safeguards and 2.360 RJ/LJ (receipts/payments), a record high and a significant increase of +13,8%, well above the national average (+3,2%).

For Thierry Millon: “The trajectory has begun to reverse with regard to payment behavior, which has improved modestly in the last quarter. At the same time, the increase in insolvency proceedings has slowed considerably for several months, raising hopes for a slight decline in 2026. However, despite the expected return to growth, economic vulnerabilities and regulatory constraints remain. Logistical disruptions persist, impacting supply times and working capital requirements; the Carbon Border Adjustment Mechanism (CBAM) increases the cost of imports of high-emission products; and electronic invoicing, mandatory for incoming goods from September, requires rapid adaptation. Companies will therefore need to be more proactive and combine financial prudence with strategic foresight to remain competitive.”

The full study "Business Failures and Safeguards – Q4 and 2025 Review" is available online by clicking here.

Methodology

The Altares business failure statistics include all legal entities with a SIREN number (individual businesses, liberal professions, companies, associations) and having been the subject of a judgment opening proceedings pronounced by a Commercial or Judicial Court (formerly TGI – TI).

Glossary

Business failure refers to the opening of a safeguard, receivership, or direct liquidation procedure before a Commercial or Judicial Court. This also applies to openings after the resolution of the recovery plan. However, the bankruptcy statistics do not consider amicable procedures (ad hoc mandate or conciliation) or the consequences of opening (plan termination or conversion into liquidation).

Illustrative image of the article via Depositphotos.com.