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Business Bankruptcies In Canada Rose 35% In 2022
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The Office of the Superintendent of Bankruptcy has reported that the number of bankruptcies filed by Canadian companies in 2022 increased 35% as government financial supports provided during the pandemic were withdrawn.
The federal regulator said there were 3,402 business insolvencies last year, up 37.2% from 2,480 in 2021. Business bankruptcies, in which companies ceased operations entirely, totalled 2,621 last year, up 35% from 1,942 in 2021.
The Canadian Federation of Independent Business (CFIB) said that only half of the 97,000 small and medium-sized businesses that comprise its membership have seen their sales return to pre-pandemic levels.
Even those that have seen sales rebound are struggling with high inflation and rising interest rates, as well as labour shortages and supply chain challenges.
Additionally, the CFIB calculates that two-thirds of its members have COVID-19 debt, with the average amount totalling $114,000.
The biggest rise in bankruptcies in 2022 occurred in Canada's accommodations and food services sector, according to the Office of the Superintendent of Bankruptcy
Along with business figures, the federal regulator tracks bankruptcies among Canadian consumers and found they totalled 24,586 in 2022, down 10% from 27,461 2021.
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