127 percent increase in businesses closing in NZ last quarter

Author
Newstalk ZB,
Publish Date
Thu, 4 Mar 2021, 7:34PM
(Photo / Getty)
(Photo / Getty)

127 percent increase in businesses closing in NZ last quarter

Author
Newstalk ZB,
Publish Date
Thu, 4 Mar 2021, 7:34PM

New Zealand businesses are starting to feel the pinch of Covid-19, with closures increasing 127 per cent.

Many businesses got through the first half of 2020 due to incentives like the wage subsidy, but the second half is painting a different story.

In September through to November 2020, 16,234 businesses shut their doors permanently compared to the same period last year. 

Dot Loves Data’s Justin Lester told Heather du Plessis-Allan says we are starting to see business resiliance teetering. 

"People are struggling. They are fighting. They want to keep businesses solvent so liquidations are still relatively slow, but we are seeing the first signs of some wobbles." 

He says that the end of wage subsidy has hurt businesses and a weaker summer means many are running out of cash reserves. 

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