In the latest edition of its business barometer, the Conseil national des greffiers des tribunaux de commerce (National Council of Commercial Court Registrars) notes a marked increase in the number of companies being struck off. In the majority of cases, these deregistrations are requested by the company directors.
Most business owners willing to wind up their business
The latest business barometer published by the Conseil national des greffiers des tribunaux de commerce (National Council of Commercial Court Registrars) shows a 28% increase in the number of company deregistrations in the 1st half of 2021, compared with the 1st half of 2020.
Of the 131,412 companies deregistered during the 1st half of 2021, 69,609 were deregistered following a decision by their manager. In the 1st half of 2020, 32% fewer companies made this choice.
"Many managers of companies hit by the crisis or intrinsically fragile thus prefer to proactively interrupt their activity in order to avoid cessation of payment and the opening of collective proceedings", declares the Conseil national des greffiers des tribunaux de commerce in a recent press release.
Their decision was also prompted by the lack of visibility regarding the economic recovery, and the gradual disappearance of state aid.
Deregistration of older companies
Unsurprisingly, the sectors hardest hit by the health crisis account for the majority of business write-offs, with accommodation and catering alone accounting for a quarter of all write-offs in the 1st half of 2021.
At the same time, other sectors are developing, such as home delivery and e-commerce, which are characterized by a high turnover: while a large number of companies are created in these sectors, a large number are also struck off, usually within a year in the case of home delivery.
What's more, these new companies, which are essentially sole proprietorships, do little to create jobs.
The latest barometer from the Conseil national des greffiers des tribunaux de commerce also highlights a notable change in the average age of struck-off companies. This is on the rise: in the 1st half of 2021, it was 12 years old, 2.5 months older than in 2020, and 6 months older than in 2019.
The Covid-19 pandemic led to the closure of well-established companies that had previously proved resilient. The fishing, forestry and agriculture sectors in particular saw the oldest companies delisted, with an average age of 18.4 years.
Finally, some regions have been particularly hard hit, such as Hauts-de-France, where the number of company write-offs has almost doubled in one year.