Business Insolvencies Surge in January, Driven by Rising Bankruptcies

11 Jun, 2024

Business Insolvencies Surge in January, Driven by Rising Bankruptcies

Business insolvencies more than doubled in January compared to a year earlier, also surpassing pre-pandemic levels for the month. The Office of the Superintendent of Bankruptcy reports 759 business insolvencies in January, a 42.4 percent increase from December and a 129.3 percent increase from January 2023.

Before the pandemic, January 2020 saw 308 business insolvencies, which included both bankruptcies and proposals. This January, the most significant increases in business insolvencies were in accommodation and food services, retail trade, and construction.

Business bankruptcies rose more sharply year over year than proposals. Consumer insolvencies also increased in January, but not as sharply. They rose 23.5 percent year over year and remained lower than January 2020 levels.