business bankruptcies up sharply in the second half of 2023

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France 2

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France 2 – D.Lachaud, K.Toufik, M.Renier, A.Daubrée

France Televisions

More than 13,000 companies filed for bankruptcy in the months of April and June, unheard of for 7 years. This is due to inflation, but also the reimbursement of charges postponed during the Covid.

More and more of them are lowering the curtain. In the second quarter of 2023, more than 13,000 companies filed for bankruptcy, 35% more than last year. Among them, that of Yannick Frichot who had opened a restaurant in Vernon (Eure). After a promising start, the Covid hits the activity of the establishment hard. To hold on, the boss takes out a loan guaranteed by the state. “We borrowed 20,000 euros, because we were completely lost”, he points out. But he fails to pay it back.

Restaurant sector hard hit

The debts accumulate until the judicial liquidation. “Taxes, duties, VAT, everything that cannot be erased”, he says. Like this, the number of business bankruptcies is exploding in the hotel, restaurant, trade and services to individuals. The sectors are suffering from inflation and the drop in consumption. “Households have a purchasing power that is constrained”explains Thierry Million, Director of Studies at Altares.


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