Business insolvencies rising to levels not seen since Great Recession

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Insolvencies had hit a low point early in the COVID-19 pandemic because of government-support programs and rock-bottom interest rates – both of which are now gone

According to the federal Office of the Superintendent of Bankruptcy, 2,003 business insolvencies were filed from Jan. 1 to March 31 of this year. Of those, 1,599 were bankruptcies and 404 were proposals, which is a legal option to negotiate lower debt repayment with creditors.

The sector with the highest number of insolvencies was accommodation and food services, with 357, or about 18 per cent of the total. Other industries with a high number of insolvencies included construction , transportation and warehousing , retail and manufacturing .

 

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