Insolvency Now (Issue 11): 2019-2024 Data Trends

CCAA BY SECTOR

The total number of CCAA filings in Q1 2024 is comparable to the total number in Q1 2023, but the sector mix changed significantly. There was a spike in agriculture, forestry, fishing and hunting filings in Q1 with the highest number recorded in one quarter since tracking began in 2019. As shown in Figure 7, in 2024, manufacturing filings dropped from 2023 results, with 27% of the quarterly average in 2023, or one-third of Q1 2023; however, we saw the strongest uptick in filings in this sector in Q2 2024. The Q2 2024 filings are similar in total and sector mix to those in Q2 2023. The number of CCAA filings in the retail trade sector was down 60% in the first half of 2024 compared with 2023. Q1 2024 had only two filings in this sector (compared with six in Q1 2023), and Q2 2024 had another two filings (down from four in Q2 2023). In the mining sector, CCAA filings rose in Q1 2024, with five filings (up from two filings in Q1 2023) and Q2 2024 had another two filings (there were no filings in Q2 2023). - 9 - filings rose in Q1 2024, with five filings (up from two filings in Q1 2023) and Q2 2024 had another two filings (there were no filings in Q2 2023). Figure 7: CCAA Restructuring in Canada

Figure 7: CCAA Restructuring in Canada

CCAA Restructuring in Canada

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Professional, Scientific and Technical Services Mining and Oil and Gas Extraction Manufacturing Retail Trade Real Estate, Rental and Leasing

BUSINESS OPENINGS AND CLOSINGS Although Q1 2024 appeared to suggest an increase in filings across the board, that quarter also had an increase in net business openings. In contrast, Q2 2024, saw a drop in insolvency filings and a net decrease in business openings (see Figure 8). As shown in Figure 9, net business openings in Q1 2024 totalled 1,095 (131,318 openings and 130,223 closings), which is far different from Q1 2023 (-2,239). The net business openings in Q2 2024 were -978 (86,526 openings and 87,504 closings), also drastically different from in Q2 2023 (9,061). In the mining sector, there were 610 openings in Q1 2024, down BUSINESS OPENINGS AND CLOSINGS Although Q1 2024 appeared to suggest an increase in filings across the board, that quarter also had also had an increase in net business openings. In contrast, Q2 2024, saw a drop in insolvency filings and a net decrease in business openings (see Figure 8). As shown in Figure 9, net business openings in Q1 2024 totalled 1,095 (131,318 openings and 130,223 closings), which is far different from Q1 2023 (-2,239). The net business openings in Q2 2024 were -978 (86,526 openings and 87,504 closings), also drastically different from in Q2 2023 (9,061). In the mining sector, there were 610 openings in Q1 2024, down slightly from the 660 openings in Q1 2023; there were 640 closings in Q1 2024, down from 703 in Q1 2023. Through the first five months of 2024, openings and closings were similar to those in 2023: 1,038 openings and 1,081 closings in 2024 compared with 1,116 openings and 1,166 closings in 2023. In the retail sector, there were 14,309 openings and 14,422 closings through the first five months of 2024, with negative net business openings in each month since January. For the first five months of 2023, there were 483 net business openings, with only one month in the negative.

Davies | dwpv.com