French wine growers face a surge in closures

In France, wine businesses are closing at a faster pace, underscoring how deep the strain has become in one of the world’s most important wine markets. In the first quarter of 2026, 83 wine growers shut down operations, up 32% from the same period in 2025, according to a study by Altares cited in the French trade press. About half of those closures were in Gironde, the department that includes Bordeaux, where growers have been hit by weak demand, restructuring efforts and years of financial pressure.

The broader agricultural picture was also grim. Altares said 487 French farming businesses entered insolvency proceedings in the first three months of 2026, up 23% from a year earlier. Within that group, crop-support activities posted an even sharper rise, with 86 cases, up 59%. The firm defines insolvency cases as proceedings that begin with safeguard measures, receivership or direct liquidation before commercial, economic or judicial courts.

The wine sector’s troubles are not new. Altares said more than 130 wine businesses had already failed in 2023. In the first quarter of 2024, failures rose another 24%, and a year later they jumped 75%. The latest figures suggest that the downturn is not a short-term disruption but part of a longer decline affecting many small producers.

France’s restaurant and hospitality industries are also under pressure, though some segments have stabilized. Restaurants recorded 2,101 insolvencies in the first quarter of 2026, down 0.4% from the same period in 2025. Traditional restaurants performed somewhat better, with 1,071 failures, down 2.5%, while fast-food outlets fared worse at 952 failures, up 2.4%. Bars and other alcohol-serving venues remained fragile, with 373 insolvencies, up 6.6%.

The lodging sector had a weak start to the year as well. Altares reported 168 insolvencies in hospitality businesses overall, up 27.3%, driven by hotels at 119 cases, up 32%, and short-stay tourist accommodations at 39 cases, up 44%.

Across all sectors, France recorded 18,986 insolvency proceedings in the first quarter of 2026, up 6.4% from the same period in 2025. Altares said smaller businesses were bearing the brunt of the strain compared with larger companies.