Tuesday, January 19

Insolvency Tsunami

Nearly 820 business insolvency cases have been processed in Quebec since March. Construction and restoration being the most affected sectors. The first lockdown resulted in hundreds of thousands of job losses. The pandemic will undoubtedly leave scars.

According to data from the GDL Crédit Ressource Québec firm provided to Newspaper, since March 17, 153 companies in the restaurant sector have been forced to use a trustee, either to file for bankruptcy, to file a notice of proposal or to make a proposal to their creditors.

Several independent restaurants stand out, as well as establishments affiliated with chains such as Houston Avenue Bar & Grill, Bâton Rouge and Pacini.

With the closure of dining rooms in the red zones this fall, the industry is now concerned that this list will grow again.

Moreover, last week, in a letter addressed to the Premier of Quebec, François Legault, restaurateurs “exhausted” and “anxious” asked the government to accept the reopening of dining rooms.

According to the President of Teamsters Canada, it is difficult to measure the impact that the 2e vague, not least because of the uncertainty surrounding the progression of the virus, over the next few weeks. He concedes, however, that some industries will suffer more.

The construction very affected

“The magnitude of the second wave remains to be determined. The extent of aid to businesses also remains to be determined. There are sectors where it will be extremely difficult, such as hotels, restaurants and the film industry ”, underlined François Laporte.

Recently, trustees like LeBlond et Associés told the Newspaper that the worst for company bankruptcies may be to come when governments end financial aid.

It must be said that currently, the number of insolvency cases is down by around 40% in Quebec. A situation that the experts justify by the many financial supports offered to get through the crisis.

In addition, several companies in the construction sector have also been forced to close or present a proposal to their creditors since last March. According to GDL Crédit Ressource, 107 insolvency cases were processed for this industry.

With the collaboration of Francis Halin and the QMI Agency


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