Confinement in Pays-de-la-Loire: Between 15 and 20% of Small Businesses Threatened with Closure

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Due to the confinement, small busiinesses in the Pays-de-la-Loire face closures

CRISIS: U2P, the leading French employers’ organisation, fears a “wave of closures” in 2021 in the Pays-de-la-Loire region

  • U2P is the employers’ union for VSEs and SMEs in the trade, craft and liberal professions sectors.
  • Its new president in Pays-de-la-Loire is worried about the consequences of the crisis in 2021.
  • “There is a lot of suffering, anger, exhaustion,” she notes.

It represents no less than 125,000 companies and 180,000 employees in Pays-de-la Loire. It is therefore well placed to judge the impact of the health crisis on the regional economy. The U2P, the employers’ union of VSEs and SMEs in the craft sector, local commerce and the liberal professions, estimates that between 15% and 20% of small businesses are “pending closures for the year to come up “.

“We will not escape a wave of closures in 2021, worries  Fanny Reyre-Menard, the brand new president of the U2P in Pays-de-la-Loire . Until then, aid and short-time working have made it possible to avoid a large number of bankruptcies. But these aids will not be able to replace economic reality forever. Based on the feedback we have, it may get more complicated in the coming months. In any case, we will do everything possible to avoid this. And maybe the recovery will be faster than expected. ”

Fanny Reyre-Menard, president of U2P in Pays-de-la-Loire
Fanny Reyre-Menard, president of U2P in Pays-de-la-Loire. – F. Rault

“Extremely important differences”

If some activities have managed to do well, the decline in turnover in 2020 is estimated at “at least 20%” in crafts and commerce, indicates Fanny Reyre-Menard. “But these data hide extremely large differences between companies that have had a drastic drop in activity and others that have not. The ability of companies to withstand these difficulties in terms of their cash flow is also very variable. ”

Even businesses considered “essential”, such as caterers and bakeries, have suffered from a lack of customers due to teleworking or cascading cancellations in the event, reports the U2P  which cites the figures of -30% among butchers. caterers and -25% at bakers.

As a result of all this, the morale of the bosses of small businesses is affected. “There is a lot of suffering, anger, exhaustion,” says Fanny Reyre-Menard. The second confinement was extremely difficult. Everyone must take this into consideration: the public authorities, the customers. We are very happy to go back to work. But we also have enormous pressure because we put ourselves in our heads to try to make up the maximum in a month. We must all be indulgent. 

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