The latest company insolvency statistics for July 2024 highlight a significant increase in corporate insolvencies within Scotland, reflecting broader trends seen across the UK.
The total number of registered company insolvencies has risen, driven by a challenging economic environment that has persisted over recent years.
Creditors’ Voluntary Liquidations (CVLs) remain the predominant form of insolvency, while other types such as compulsory liquidations, administrations, and Company Voluntary Arrangements (CVAs) have also seen increases.
This trend underscores the ongoing financial pressures faced by Scottish businesses, particularly in sectors heavily impacted by economic fluctuations.
Michelle Elliot, a restructuring advisory partner at FRP in Glasgow, commented on these statistics.
Elliot said: “This data reflects the cumulative effects of years of extremely challenging economic conditions working their way through supply chains.
“The economic landscape is improving, and businesses optimism is likely to have been buoyed by the Bank of England’s rate cut earlier this month.
“Against this backdrop, we’re expecting to see an increase in investor activity, which could bring opportunities for firms to restructure their balance sheets with the help of new partners.
“Despite the optimism, there are still challenges ahead. This is still a difficult trading environment, and management teams will need to remain vigilant for signs of distress, and maintain their focus on building resilience.”
