EMCC European Monitoring Centre on Change

Commissioners for restructuring and prevention of business difficulties

France
Phase: Management
Typ:
  • Advice
  • Matching/Networking
  • Support of SMEs
  • Territorial coordination
Senast ändrad: 09 September, 2020
Lokalt namn:

Commissaires aux Restructurations et à la prévention des difficultés des entreprises

Engelskt namn:

Commissioners for restructuring and prevention of business difficulties

Coverage/Eligibility

The Commissioners are at the heart of the system for anticipating and supporting companies in difficulty with fewer than 400 employees. Their scope of intervention focuses primarily on industrial companies with more than 50 employees. Attached to both the regional prefects and the DIRECCTE, the Commissioners are the entry points for companies facing economic difficulties.

Main characteristics

Commissioners carry out an early detection action in order to anticipate as early as possible the fragility of the company and offer them solutions adapted to their needs. In this frame, they have a double mission at local level: 

  • to intervene as intermediaries for companies in economic difficulties in order to get them out of the impasse and help them find viable solutions vis-à-vis their creditors (banks, clients, suppliers, etc.);
  • to lead a regional committee responsible for monitoring the economic situation of regional businesses in order to take appropriate measures to prevent any difficulties. 

They provide personalised support and advice for companies facing economic difficulties and help them find solutions at the local level. In order to make early detection of companies' difficulties more efficient, the Commissioners can now rely on artificial intelligence and a new partnership approach bringing together several public players: they have access to the 'Weak Signals' system. This platform, based on available companies' data from different administrations, allows to detect a risk of failure at 18 months. Experimentations of this new tool started as soon as 2014 in one French region, before the decision to generalise it was passed in  2019.

This instrument was developed during the economic recession in 2009. At that time, 10 commissioners for reindustrialisation were appointed. In July 2012, the commissioners were renamed and their number increased. The measure was confirmed in April 2018 and the commissioners were renamed again.

Funding

  • National funds

Involved actors

National government
Initiative and funding
Regional/local government
Local authorities (notably the regional prefects and the Direccte)
Public employment services
Local PES

Effectiveness

There are between one and three commissioner(s) per region (23 commissioners in the whole country as of 5 June 2020) appointed by the Minister in charge of the economy on proposal of the regional prefects. They cover all French metropolitan regions.

From July 2012 to December 2018, the number of companies which benefited from this support was 4,028,  and more than 270,000 jobs were maintained. In 2018, the Commissioners supported 2,050 companies (over 75% of which are SMEs and industrial mid-sized businesses with 164 employees on average), with a success rate of over 90%. Automotive industry, construction, agri-food, woodworking, metalworking and electronics sectors were the main benefiting sectors.

An interesting point is that, in 2016, only a minority of companies supported were placed in bankruptcy (338 out of 2,596) which might demonstrate that early warning measures put in place by the Commissioners, in link with relevant local actors, were efficient.

Strengths

This instrument enables a better monitoring of challenges to regional economic development and a personalised support for companies facing economic difficulties. It also involves many relevant actors: regions, chambers of commerce, credit mediation, etc. This instrument is thus also a mean to facilitate the involvement/cooperation of various actors interested in the support to companies. The generalisation in 2019 of the 'Weak Signals' platform might improve the early detection of companies' economic difficulties.

Weaknesses

No information available.

Exempel

NVH MEDICINAL in the Bourgogne-Franche-Comté region (7 jobs concerned); CLESTRA in the Alsace region (700 jobs concerned); Villemur Industries in the Midi-Pyrénées region (50 jobs concerned); Rio Tinto in the Rhône-Alpes-Auvergne region (470 jobs concerned); SITL (previously Fagor Brandt) in the Rhône-Alpes-Auvergne region (395 jobs concerned)
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