The year 2024 was a difficult one for many B.C. businesses, with a number of insolvencies occurring in a variety of sectors.
Nationally, business insolvencies for the 12鈥憁onth period ending Oct. 31 increased by 41.7 per cent year to year, according to the federal Office of the Superintendent of Bankruptcy (OSB). The October data was the most recent available.
Transportation, warehousing, construction, accommodation and food services registered the biggest increases in insolvency numbers, OSB said. Mining, quarrying and oil and gas extraction registered the biggest decreases.
Various factors have contributed to a challenging business climate, including inflation, higher taxes and levies, rising input costs, limits on foreign investment, weaker demand and supply-chain disruptions.
Among the most prominent insolvencies in B.C. over the past year were:
- Black Press Ltd.: The privately owned newspaper publisher commenced proceedings under the Companies’ Creditors Arrangement Act (CCAA) in January 2024. The owner of dozens of community newspapers across Western Canada emerged from creditor protection in March following a restructuring and sale of the company to Canso Investment Counsel Ltd., Deans Knight Capital Management Ltd. and Carpenter Media Group.
- Nexii Building Solutions Inc.: Green construction firm Nexii sought creditor protection in January. KSV Restructuring was appointed to oversee a sale. At the time, Nexii owed creditors more than $112 million. According to a B.C. Supreme Court approval and vesting order, Nexii Building Solutions and its subsidiaries were sold to Nexiican Holdings Inc. and Nexii Inc. for $500,000 and the assumption of more than $20 million in debt obligations. The company was reportedly valued at $2 billion just two years ago.
- Teal Jones Holdings Ltd.: One of Surrey’s biggest manufacturing employers filed for creditor protection in April under the CCAA. At the time, the privately held forestry company employed roughly 1,000 people, including 400 in Surrey, where it operated three mills producing lumber, cedar shakes, shingles and guitar tops. In the first two months of 2024, the company said costs exceeded sales, resulting in a $4 million loss. A restructuring of operations continues under monitor PricewaterhouseCoopers Inc. (PwC).
- Central City Brewers and Distillers Ltd.: Surrey-based Central City Brewing, which specializes in the production, distribution and sale of liquor products, was granted creditor protection in November, with PwC appointed as monitor. Primary secured lenders Canadian Western Bank and Business Development Bank of Canada were owed $23.7 million and $28.3 million, respectively. The company continues to operate.
- Thind Properties Ltd.: Lenders have sought receivership for several projects after the Burnaby-based developer allegedly defaulted on some of its financial commitments. KingSett Mortgage Corp. initiated legal proceedings for three Thind projects to be placed into receivership: District Northwest in Surrey, Highline in Burnaby and Minoru Square in Richmond. The B.C. Supreme Court placed District Northwest under receivership in November, and placed the other two projects under receivership in December. A fourth, unnamed Thind property is reportedly ensnared in foreclosure proceedings.
- Small Business BC: In December, the not-for-profit Small Business BC (SBBC) filed for bankruptcy. MNP was appointed as trustee for the organization, which provided grants and free resources aimed at supporting entrepreneurs and small businesses in the province. Last year, SBBC told BIV it had distributed more than $20 million in business recovery grants to 19,000 businesses as of 2023. SBBC made its bankruptcy filing December 5.
