France industry: bankruptcies and succession reshaping

Recent data confirm a gradual reshaping of French industry. According to Banque de France, 65,764 companies failed in 2024 compared to 51,145 in 2019, an increase of about 28.6%. After an exceptionally low period during 2020-2021 due to state support, this reflects a normalization toward historical levels.

In sectoral terms, industry remains less exposed but follows a similar trend. Industrial failures reached 4,249 in 2024 (+8.0% year-on-year) and 4,404 in 2025 (+3.4%). This indicates a gradual normalization rather than a sharp deterioration.

As Reuters noted, 'the rise in business failures reflects a normalization after years of state support during the pandemic' (Reuters).

At the same time, industrial momentum is slowing. Government data show net industrial site openings of +176 in 2022, +189 in 2023, and +89 in 2024, a decline of about 52.9% between 2023 and 2024. Data for 2025 confirm a positive balance without a consolidated annual figure yet.

Financial conditions are a key factor. The European Central Bank raised its deposit rate from -0.50% until mid-2022 to 4.00% in September 2023. The Financial Times reports that 'higher borrowing costs are starting to weigh on smaller European businesses' (Financial Times).

Energy prices also remain elevated. Eurostat data show electricity prices for non-household consumers peaked at 0.1987 €/kWh in late 2022 before easing to around 0.156 €/kWh in 2025, still above earlier lows.

These trends are global. In the United States, business bankruptcy filings rose by 29.9% in 2023 and 22.1% in 2024. The Wall Street Journal notes that 'bankruptcies are rising as pandemic-era support fades and interest rates remain elevated' (Wall Street Journal).

Beyond cyclical factors, business succession is a growing structural issue. Bpifrance Le Lab estimates that around 370,000 businesses will need to be transferred in France by 2030, representing nearly 3 million jobs. INSEE data show over 25% of SME owners are above 60 years old.

In 2024, about 26,000 businesses were transferred compared to an estimated potential of 74,000, highlighting a gap between supply and demand for takeovers. In some cases, viable firms close due to the lack of buyers.

This has local implications, particularly in industrial regions where SMEs support employment and supply chains.

Similar dynamics are observed globally, notably in Japan and Italy, where aging business owners are increasing succession challenges.

However, statistics do not always distinguish between economic failures and succession-related closures. According to an unverified financial source, the latter may be increasing.

Overall, French industry reflects the interaction of post-crisis normalization, tighter financial conditions and demographic transitions in a changing global environment.

FAQ

Are failures above pre-Covid levels?
Yes, about 28.6% higher than 2019 levels.

What is the impact of interest rates?
Rates rising from -0.50% to 4.00% increase borrowing costs.

Why is succession critical?
Aging business owners increase the number of firms without successors.