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Old 03-08-2024, 10:48 AM   #11331
belsarius
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Originally Posted by GGG View Post
Is that the final affects of Covid debt or something else? Essentially did government supports artificially surpress insolvencies as can see by the decline during Covid and this is the end state of business that would have normally failed but didn’t catching up?
I think this is a good chuck of the reason, but probably not all of it. CEWS and CERS is the only reason my company didn't have massive layoffs and probably shutter a few locations during covid. Business hasn't picked up to pre-covid levels so without that support we are now on a razor's edge of insolvency. Based on payment behavior from customers, I expect a lot of companies are feeling the same way.

Now couple losing that support was inflationary pressures and I think we are seeing 2-3 years worth of insolvencies delayed until now. We would still be seeing the high number, but I think the general trend line would have not been so steep.
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