Rise in business bankruptcies could signal a wave of defaults to come: expert

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The number of bankruptcies filed by Canadian businesses is on the incline, according to the Canadian Association of Insolvency and Restructuring Professionals. One expert warns this surge could signal a growing wave of defaults among businesses in Canada over the months and years to come.

The number of bankruptcies filed by Canadian businesses is on the rise. According to the Canadian Association of Insolvency and Restructuring Professionals , there werefiled in the first quarter of 2022. This is compared to 603 insolvencies filed at the same time last year.

The number of business bankruptcies filed during the pandemic have remained below normal levels due to government subsidies and loans. However, with those supports no longer in place, Kelly said this has led numbers to rise. Sectors that saw the largest annual increase in bankruptcy filings were construction, transportation, and warehousing.

“If that were to happen, think about the employment that that would take out of the system, and the impact that that would have right through the food chain as businesses go bankrupt and aren't paying their suppliers and aren’t paying even the banks for any debt that they've taken on,” Kelly said. “There's huge economic effects.”

 

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im small business ive lost 60% of my customers they're gone. at this time were just paying bill's hoping to make it thru . many of my customers want the work done but cant afford it . material prices have gone up 500% in the last 2 yrs no end in sight .SCRAP THE CARBON TAX

Just they way the Liberal Government planned it into their “Great Reset” playbook. Look at how Covid Restrictions seemed to favour the Big Box Stores and penalize then Mom and Pop stores.....it was all by design.

But the Libs say the economy is doing so well that they have to keep increasing interest rates to cool it! Are you implying they are lying? cdnpoli

Government is killing small businesses across the country. But it will be ok as long as Justin gets a selfie.

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