Défaillance d’entreprise Explained
We talk about failure or balance sheet deficit when a company is undergoing judicial recovery proceedings, generally because it is no longer able to meet its debts.
Despite the crisis, France still has more millionaires
In March 2026, the Bank of France recorded a 5% increase in business failures over a year, with over 70,000 cases reported. This trend shows no signs of slowing down. After January and February, this is the third consecutive month of increase, while the rate of failures had been slowing down since the beginning of 2023.
Economic Climate Fragile
The Bank of France mentions a deteriorated economic situation, attributed in part to political uncertainties in France. Business leaders claim to lack confidence with the feeling of a political power incapable of reducing deficits or slowing down public debt, and whose leaders are in free fall awaiting the 2027 presidential election. In addition, there are international upheavals, including the war in the Middle East triggered at the end of February in Iran, which adds to the conflict in Ukraine.
Deteriorating Geopolitical Situation
As the geopolitical situation continues to deteriorate, this gloomy atmosphere is likely to persist in business activity. However, there are still some rays of hope: despite the failures, new companies continue to be created simultaneously. The Bank of France has recorded approximately 1.2 million newly created structures between March 2025 and March 2026. However, these are small businesses that emerge, mainly in crafts or among self-employed individuals, often fragile during their creation phase, and whose sustainability is never guaranteed.
