43.8% increase in one year: More and more companies are going bankrupt in Quebec

In total, 3,534 companies in Quebec filed for insolvency, between May 2023 and May 2024, including 2,906 bankruptcies and 628 proposed settlements with creditors, according to data from the Office of the Superintendent of Bankruptcy (OSB).

The number of insolvent businesses in Quebec jumped 43.8% in 12 months, and the total is double that of Ontario, where there were 1,715 insolvent businesses between May 2023 and May 2024 (35.1%), including 1,348 insolvent businesses.

It also accounts for nearly half of all insolvency cases in the country. In total, 6,106 businesses in Canada filed for bankruptcy in the 12-month period ending May 31, 2024, including 4,783 filing for bankruptcy.

In fact, across Canada, business insolvencies jumped 41.7% between May 2023 and May 2024, marking two and a half years of continuous increase.

“The number of business insolvencies registered in May this year increased by 67.6% compared to May 2019, well above pre-pandemic levels,” the Canadian Professional Services Association (ACPIR) commented in a press release.

“The expiration of the CEBA loan repayment deadline this year has put a further burden on many, adding to already high operating and borrowing costs. The number of insolvencies continues to increase, and more companies are now delaying their tax payments while juggling other financial obligations, increasing their debt,” noted André Bolduc, a licensed insolvency trustee and chairman of the CAIRP board.