Business insolvency filings in Canada reached their highest third-quarter volume in 15 years, with 1,312 companies at risk of collapse. The surge is attributed to a sluggish economy, declining demand across industries, and until recently,the impact of rising interest rates and inflation.
From October 31, 2023, to October 31, 2024, insolvency filings increased in nearly every province, with Ontario seeing the largest rise—an additional 588 filings, up by two-thirds. Quebec also experienced a significant jump, with a 40.4% increase, adding 847 bankruptcies. New Brunswick and Newfoundland and Labrador were the exceptions, showing no rise in filings.
The hardest-hit sectors in Canada during the third quarter, compared to the previous year, were construction, accommodation and food services, and transportation and warehousing. According to the Canadian Association of Insolvency and Restructuring Professionals, insolvency filings in these industries saw notable increases: construction filings rose by 37%, accommodation and food services by 32%, and transportation and warehousing by 28%.