French companies see surge in insolvencies and payment delays

Corporate insolvencies in France accelerated in the second quarter of 2026, with 17,486 collective procedures opened – a 5.4 % rise year‑on‑year – and 37,700 cases in the first half of the year, 1,500 more than the same period in 2025. The increase is driven largely by very small firms: companies with fewer than three employees account for three‑quarters of all procedures, and young enterprises (under five years old) are especially exposed.

Sector analysis shows construction leading the tally with 4,186 firms, while the automotive trade and repair sector recorded a near‑15 % rise in failures, with repair workshops up 28 %. The broader business environment is strained, reflected in record‑high rent payment delays in Île‑de‑France, where 42 % of all incidents occurred in May 2026 and the average delayed rent exceeded €800.

A separate study of micro‑entrepreneurs revealed that only 28 % of those registered in the first half of 2018 remained active after five years, underscoring the fragility of the simplified self‑employment model. Legal experts also highlighted the growing importance of the property‑reservation clause, which allows suppliers to retain ownership of goods until full payment, as a critical tool for protecting creditor rights amid rising defaults.