Canadian Business Insolvency Filings Drop to 35-Year Low, But 'Slew' of Filings Feared After Pandemic Aid Ends

Just 160 Canadian businesses filed for insolvency in July, marking a 35-year low in new filings, according to new data from the Office for the Superintendent of Bankruptcy, the Financial Post reported. The record low, which represented a 28.3 per cent decrease in filings from the month prior, is largely due to the federal government’s pandemic wage and rent subsidies and other business support programs such as the Canada Emergency Business Account, which have been extended until October.Business insolvencies were down 21.2 per cent in the 12-month period that ended on July 31 compared to the year before. But the Canadian Association of Insolvency and Restructuring Professionals said the end of those subsidies may precede a wave of new filings if businesses aren’t able to fully ramp back up before that point. Read more