In September 2024, Scotland registered 73 company insolvencies, marking a 16% decrease compared to September 2023.
The total comprised 48 creditors’ voluntary liquidations, 18 compulsory liquidations, and seven administrations, with no company voluntary arrangements or receivership appointments.
Despite this monthly decline, experts warn that overall insolvency levels are expected to remain elevated due to ongoing economic challenges and business uncertainties
Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “While we continue to see month-on-month fluctuations in Scottish insolvency levels, overall volumes are likely to stay high for some time to come.
In Case You Missed It:
“Many businesses continue to carry significant amounts of debt, the pressure of which isn’t being offset by growth in sales or demand.
“The forthcoming Budget is also causing uncertainty for businesses, and concern that employer’s National Insurance rate may be increased, which would increase their tax burden.
“Continually-slowing inflation raises the prospects of new, potentially sharper, rate cuts from the Bank of England before the New Year, which could make it easier for businesses to service existing borrowing or secure new capital. But any benefit is likely to bring a small alleviation – not a fundamental fix.”
