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Business insolvencies are running at more than double the rate of last year, and one economist says the failure rate exceeds that of the global financial crisis.
There were 72 liquidations in October administered by the Insolvency and Trustee Service, just down from 74 in September.
Of those, 37 were in Auckland.
In comparison, there were only 58 in the year to June 2019.
Simplicity chief economist Shamubeel Eaqub said the rate of insolvencies was double what it was at this time in 2023.
“It’s consistent with what I would expect and I’d expect this to continue.”
He said the coming months would be tough for many businesses, if they were not in hospitality or retail.
Cash flow was a big problem for many…
