Businesses experienced a sharp increase in bankruptcies in the last quarter of 2021 according to the Canadian Association of Insolvency and Restructuring Professionals (CAIRP).

Insolvencies were up by 36.8% across the board during last year’s fourth quarter, marking a 35-year high. The brunt of the damage was caused by closures in the food, accommodation and construction industries.

“The figures do not tell the whole story because owners of small, fragile companies that were surviving through low-interest rates and government support may decide to walk away rather than consider insolvency or restructuring options.”