Issue 20-80: Bankruptcies
May 11, 2020
There were 326 bankruptcies filed by consumers in British Columbia in March, a slight (-5.0%) decrease from the same month of 2019. Meanwhile, the number of business bankruptcies was notably lower, falling 37.5% to five.
Bankruptcies were concentrated in the services sector, with one business declaring bankruptcy in each of the following: wholesale trade, retail trade, transportation and warehousing, finance and insurance, and information and cultural industries.
Nationally, the total amount of bankruptcies filed was down 20.5%, as both consumer (-19.5%) and business (-37.7%) numbers declined.
The decline was widespread across most industries, with construction reporting the largest decrease in the number of businesses filing for bankruptcy (-55.7% or 34 businesses) compared to March 2019. Only retail trade (+22.7% or 5 businesses), transportation and warehousing (+12.5% or 2 businesses) and utilities (+2 businesses) saw an increase in the number of bankruptcies in March compared to the previous year.
Note: Monthly statistics and growth rates for bankruptcy volumes tend to vary widely and as such, should be viewed with caution. Quarterly and annual statistics can be more indicative of overall trends.
Data Source: Office of the Superintendent of Bankruptcy Canada