Business insolvencies surged 87.2% year-over-year in the first quarter of 2024, while consumer insolvencies rose 14%.
Data from the Office of the Superintendent of Bankruptcy shows business insolvencies totalled just over 2,000, with about 1,600 of those being bankruptcies.
The Canadian Association of Insolvency and Restructuring Professionals says that’s by far the largest year-over-year increase in business insolvencies in 37 years of records.
Business insolvencies rose 31.7% from the fourth quarter of 2023.
The association says it’s seeing signs of a significant rise in distress among Canadian businesses as they deal with pandemic debt, higher costs, declining consumer spending and higher interest rates.
Consumer insolvencies during the first quarter totalled almost 34,000, with the majority being proposals.