In what has been a challenging year for the business landscape in British Columbia, several prominent companies have found themselves navigating through financial distress, leading to insolvency proceedings.
This follows a record-breaking 65.4% increase in British Columbia businesses declaring bankruptcy in 2023.
While precise 2024 figures are still being finalized, several significant business failures were reported in the media this year as reported by Business in Vancouver.
Building on the challenging economic backdrop of 2023, businesses in British Columbia grappled with persistent headwinds.
The year began with Black Press Ltd., a major player in local journalism, entering creditor protection in January. By March, the company had restructured and was sold to new owners, marking a significant shift in its operational history.
Nexii Building Solutions Inc., a once-promising green construction firm, faced its own financial reckoning, with debts surpassing $112 million. The company was eventually sold for a mere $500,000, with the new owners also assuming the company’s substantial liabilities.
Teal Jones Holdings Ltd., a significant name in the forestry sector, filed for creditor protection in April after reporting a $4 million loss. The company is still in the process of restructuring, highlighting ongoing struggles within industries heavily reliant on raw material prices and export markets.
The brewing and distilling industry wasn’t spared either, as Central City Brewers and Distillers Ltd. declared insolvency and entered creditor protection in November. Owed over $50 million to major lenders.
Real estate developer Thind Properties Ltd. saw several of its projects placed under receivership due to financial defaults, further illustrating the strain within the property sector.
Meanwhile, Small Business BC, an organization known for supporting local entrepreneurs, filed for bankruptcy in December, despite having previously received a $20 million federal grant a month before becoming insolvent.
On a national scale, Canada experienced a 41.7% year-over-year increase in reported insolvencies for the 12 months ending October 31, 2024. The construction, accommodation, and transportation sectors were among the hardest hit, while others like oil and gas saw a decrease in insolvency rates.
Regionally, British Columbia recorded the second-largest percentage increase in business insolvencies in 2023 at 65.4%. Other provinces like Newfoundland and Labrador and Nova Scotia also noted significant spikes. In terms of volume, Quebec and Ontario saw the largest increases in insolvency filings.
