In November there were 109 company insolvencies registered in Scotland, down 8% year-on-year.
This was comprised of 30 compulsory liquidations, 74 creditors’ voluntary liquidations (CVLs) and five administrations. There were no company voluntary arrangements or receivership appointments, according to the latest figures from Accountancy in Bankruptcy, Scotland’s insolvency service.
Historically, the volume of company insolvencies registered in Scotland has been driven by compulsory liquidations. However, between April 2020 and March 2022, approximately three times as many CVLs as compulsory liquidations were registered.
In the first 11 months of 2023, CVL numbers remained more than 1.5 times higher than compulsory liquidation numbers.
Between 26 June 2020 and 30 November 2023, in Scotland, no moratoriums were obtained and two companies had a restructuring plan registered at Companies House.
Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “We’re likely to see insolvency numbers rise as businesses across the Scottish economy grapple with operational cost pressures stemming from persistent input cost inflation and interest rates that are at a 15-year high, along with weak customer demand.
Businesses will be hoping that the new year brings an improvement in conditions, but if this doesn’t materialise, it could leave many facing a crunch point as they kick off 2024.”
Source: Insider.co.id
