While the number of business bankruptcies continues to decline in mainland France, the overseas territories are heading in the opposite direction. After several quarters of relative calm, the trend is on the rise again. Nearly 2,400 reorganization or liquidation proceedings were filed in the overseas territories over the past twelve months. Some regions, such as Guadeloupe and Mayotte, are even seeing dramatic increases, raising questions about the resilience of their economic structures.
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This increase comes amid a national situation that remains tense
At the end of the first quarter of 2025, the cumulative number of business failures in overseas territories (excluding French Polynesia) reached 2,368 cases, representing an increase of +8.9 1Q3Q year-over-year, according to the latest data released by the’IEDOM-IEOM.
By comparison, France as a whole records 66,656 proceedings, up by +12,2 %, but at a significantly slower pace.
This upturn in the overseas departments and communities (DROM-COM) stands in contrast to the trend observed over the past several quarters. The report states: «After slowing for several consecutive quarters, the rate of increase in bankruptcies has thus picked up.». In other words, the wave seems to be picking up again.
Tourism, services, agriculture: the sectors most at risk
The’lodging and dining is on the front lines. With 241 failures, it posted an increase of +32,4 % compared to the previous year. Next come the business services (+18,8 %), the’agriculture (+31,4 %), and the’Information and Communication (+33,3 %).
This overrepresentation of sectors that are often dependent on local or tourist demand underscores the vulnerability of island economies to external shocks.
Conversely, the construction, which accounts for nearly 20 % Failures in the area, remains relatively stable (+1,1 %), which can be explained by the carryover effect of ongoing construction projects or by certain targeted subsidies for the sector.
The only real decline: that of the’industry, whose defaults are declining by 8,3 %, a trend that runs counter to the national trend.
Contrasting Regional Trends
Not all overseas territories are affected to the same degree. The Meeting, which includes nearly 40 % of overseas companies, remains the largest contributor with 1,098 proceedings recorded. The increase there is +15,5 %, but it has been slowing for four consecutive quarters.
The situation is significantly more tense elsewhere. In Guadeloupe, bankruptcies are surging from +29,5 %, reaching 408 cases, a level that is close to the all-time high set in 2014 (411).
The French Guiana shows an increase of +27,5 %, and Mayotte is seeing an impressive surge in +44,1 %, even though in absolute terms, That amounts to «only» 49 cases.
The Martinique follows a more moderate trend, with +2,0 % progress (465 cases), but this figure marks a reversal of the trend: «a decline compared with the previous quarter, during which the number of cases filed fell for the first time in three years», the report states.
Alone New Caledonia is marked by a significant decline in defaults: −23.3 1Q3Q. The paradox is only apparent. According to IEDOM-IEOM, the decline observed in this region in the midst of a deep crisis can be explained by «the aid programs implemented to support the economy in response to the crisis that affected the region in May 2024».
A warning sign to watch out for
While the overall number of bankruptcies in overseas territories remains modest compared to the national level, the trends observed in certain territories raise legitimate concerns.
These increases are not merely cyclical: they reflect ongoing exposure to multiple risks—climate-related uncertainties, sectoral dependence, inflation, and the vulnerability of very small businesses.
Some regions still benefit from government safety-net programs, while others are struggling to find appropriate sources of support. In this context, disparities between regions are likely to widen further if no targeted action is taken.
View the report – Business Failures in the Overseas Territories – 1st Quarter 2025
The figures for the first quarter of 2025 likely mark the beginning of a new cycle, and we will need to monitor its developments closely. The question is not so much whether the rise will continue—it already seems to be underway—but rather to identify what tools can be deployed to prevent it from turning into a social and economic shockwave.
While some territories have already exceeded the critical thresholds observed a decade earlier, the resilience of the overseas entrepreneurial sector is once again being put to the test. The upcoming quarterly report from IEDOM-IEOM will likely shed more light on the true extent of this resurgence in business failures.