Rise in corporate failures continues in tense geopolitical climate

We talk about receivership or liquidation when a company is subject to a judicial reorganization procedure, usually because it is no longer able to meet its debts.

In March 2026, the Banque de France recorded a 5% increase in business failures over the course of a year, with over 70,000 cases reported. This momentum is not slowing down, quite the opposite. 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.

This increase observed in March affects companies of all sectors and sizes. Household services, social action, and healthcare show an increase of over 15% in bankruptcies. In the transportation and storage sector, it’s over 10%. A similar percentage for agriculture, forestry, and fishing. Only the construction sector is exempt from this trend with a 2% decrease in business failures in March.

The Banque de France attributes this deteriorating situation to a degraded economic situation, due 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 curbing public debt, and whose leaders are running unchecked while waiting for the 2027 presidential election. In addition, international upheavals, including the war in the Middle East triggered at the end of February in Iran, add to the conflict in Ukraine.

As the geopolitical situation continues to deteriorate, this bleak climate may persist in business activity. However, there are still some glimmers of hope: failures do not prevent the creation of companies on the side. The Banque de France records around 1.2 million newly created structures between March 2025 and March 2026. However, these are small businesses that are emerging, mainly in crafts or among self-employed individuals, often fragile at inception, and whose sustainability is never guaranteed.