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Canadian business insolvencies surged almost 42% from year earlier in third quarter

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Businesses are being hit by the withdrawal of COVID-19 support, higher interest rates and softening consumer spending, according to CAIRP

Canadian business insolvencies were up 41.8 per cent from a year earlier in the third quarter, surpassing pre-pandemic levels.

“Many companies emerged out of the pandemic already over-leveraged and now they have the added pressures of higher borrowing costs, less access to capital, and high inflation leading to increased costs. It is inevitable that some will be significantly challenged, especially those in consumer-facing sectors,” said CAIRP chair Andre Bolduc in a press release.

Meanwhile, many Canadians are seeking help with mounting personal debt amid a higher interest rate environment, CAIRP said.

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