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# [RÉUNION] Business Failures Up 30% Across French Overseas Territories: Réunion Accounts for Half
- URL: https://businessoi.media/en/la-reunion-faillites-en-hausse-de-30-dans-les-outre-mer-la-reunion-concentre-la-moitie-des-cas-en/
- Published: 2026-08-07T08:43:17.000Z
- Updated: 2026-08-07T08:43:17.000Z
- Description: 709 company failures across French overseas departments in Q2 2026, up 30% year-on-year. Réunion accounts for 48% of the total with a 36% surge — far above the national rate of +5%.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, emploi, Économie, Flash de mi-journée, #en

The alarm is sounding: **709 company failures** were recorded in France's Overseas Departments and Regions (DROM) in the second quarter of 2026, according to Allianz Trade data. That represents a **30% increase** versus Q2 2025 — nearly double the national rate (+5%).

## Réunion: epicentre of the crisis

Réunion alone accounts for **almost 48% of all overseas failures**, with a **36% year-on-year surge**. Across the first half of 2026, the trend is even starker: +23% across all overseas territories. Guadeloupe (+46%) and Martinique (+45%) show sharper proportional rises, but Réunion's absolute volumes remain the highest. French Guiana is the exception, posting a 29% decline after an exceptional spike in 2025.

## Trade and services hit hardest

By sector, retail trade is the hardest hit: +33% failures in the DROM versus just +3% nationally. Services follow at +28% (vs +8% in metropolitan France). Industry (+23%) and hospitality (+8%) round out the picture, with hospitality holding up better thanks to the tourism season.

## A cocktail of structural causes

Allianz Trade points to several compounding factors: sluggish growth on the island (unemployment at **18% in Q1 2026**), persistent inflation squeezing household spending, tight financing conditions, and geopolitical uncertainty weighing on business confidence. Import competition from low-cost sources — structurally hard to counter in an island economy — adds further pressure.

At the national level, France recorded 18,004 collective proceedings in Q2 2026, with projections exceeding 70,000 failures for full-year 2026 — a worrying level that the overseas territories are surpassing by a wide margin proportionally.

## Why it matters

Each business failure in Réunion means jobs lost in an already stretched labour market. A 30% spike in Q2 2026 will fuel calls from chambers of commerce for targeted support schemes for island economies. Without a structural response, Réunion's SME fabric risks lasting damage — and recovery becomes harder with each passing quarter.

*Sources: Allianz Trade via Megazap, Entrepreneur.re, linfo.re — 7 August 2026*