July 18th, 2024

Business and consumer insolvencies rise in May from last year

By The Canadian Press on June 28, 2024.

A pedestrian walks past an empty store front in Montreal, Wednesday, Jan. 29, 2020. THE CANADIAN PRESS/Ryan Remiorz

TORONTO – Canadian insolvencies rose in May from last year as elevated inflation and interest rates continue to hit businesses and consumers.

Data from the Office of the Superintendent of Bankruptcy shows total insolvencies were up 19.2 per cent from May 2023 and up 3.1 per cent from April.

The overall figures came as consumer insolvencies totalled 12,195 in May for a rise of 3.4 per cent from April and an increase of 11.3 per cent from last year.

Business insolvencies were down from April, falling 3.8 per cent to 530, but up 41.7 per cent from last year.

Some sectors have seen steeper rises though, such as construction where the 92 insolvencies worked out to a 24.3 per cent increase from April and up 109.1 per cent from May last year.

The Canadian Association of Insolvency and Restructuring Professionals says consumer insolvencies are at their highest volume since October 2019, while year-over-year business insolvency levels have been continuously rising for 2.5 years.

This report by The Canadian Press was first published June 28, 2024.

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