(Susan McNeil/paNOW Staff)

By Jaryn Vecchio

Struggling Businesses

Business bankruptcies currently aren’t plaguing P.A., but that could change

Aug 18, 2022 | 12:34 PM

Business bankruptcies continue to rise across the country, but Prince Albert isn’t following suit.

Patty Hughes, the CEO of the P.A. and District Chamber of Commerce, told paNOW she’s heard little to no talks about local businesses having to do this.

In a report released on Wednesday by the Canadian Federation of Independent Business (CFIB), bankruptcies are currently at a two-year high, while some businesses have chosen just to close their doors instead of going through the process.

Hughes said if things continue the way they are, specifically around high prices, P.A. businesses will start to follow suit.

“They can’t meet the cash flow obligations that they have, so some difficult decisions have to be made.”

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CFIB’s report also noted that 54 per cent of businesses across the country are experiencing below-normal revenues, while 62 per cent still have debt.

Some have argued that the federal and provincial governments need to provide more financial support, however, Hughes thinks there are other things they can do to help businesses.

“The other thing we really need to take a look at is our supply chain issues and what are the things they can do to try and control the inflationary costs.”

Meanwhile, there are ways for the public to help local businesses.

The easiest way is to simply buy local.

“We still need to think about shopping local and supporting our local businesses,” said Hughes.

She understands why a lot of people decided to shop online, mostly due to the COVID-19 pandemic, however, the more who shy away from in-person buying, the more likely it is a local business will have to close due to lack of revenue.

Hughes also explained that if the supply chain issues are fixed, these businesses will be better positioned to stock what the public wants to buy.

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Jaryn.Vecchio@pattisonmedia.com

On Twitter: @princealbertnow