France Sees Europe’s Biggest Jump in Distressed Firms, A&M Says

France registered the biggest spike in the proportion of companies in financial distress last year as the country struggled with a weak labor market and deteriorating business sentiment.

Some 10.5% of French companies were in distress last year, up from 8.1% in 2023, according to a report from consulting firm Alvarez & Marsal published on Thursday.

The firm pointed to the country’s political and fiscal challenges as reasons behind an increase in struggling businesses. France experienced months of political turmoil in 2024 after snap elections resulted in a divided parliament.

Healthcare firms were the country’s most troubled, with 17.3% ...