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Almost 9,000 businesses in France filed for bankruptcy in the third quarter of 2022

Almost 9,000 French businesses filed for bankruptcy in the third quarter of 2022, a record for the last 25 years, RIA Novosti reports citing Franceinfo radio station.

“According to estimates by the Altares agency, which collects information about enterprises, 8,950 bankruptcy proceedings were launched in the third trimester of 2022, which is 69% more than in the summer of 2021,” the report says.

With reference to the agency, the radio station also notes that such a number of bankruptcies has become a record over the past 25 years. Small shops, restaurants and hair salons have been hardest hit. Thus, the number of closed restaurants increased by 150% compared to the same period last year. Also closed 94% more hairdressers and beauty salons.

The agency's experts attribute this to the acceleration of inflation after the start of a special military operation in Ukraine and, accordingly, to rising prices for services, a reduction in state support measures for enterprises, as well as a partial change in consumer habits during the years of the pandemic.

In July, annual inflation in France was 6.1%, the highest level since July 1985. Analysts at the National Institute of Statistics and Economic Research of France (Insee) predict it will accelerate to 6.6% in December 2022, and food prices will rise by 11.7%.

Almost 9,000 businesses in France filed for bankruptcy in the third quarter of 2022