Company insolvencies down 16% in Scotland

There were a total of 73 company insolvencies registered in Scotland in September 2024, comprised of 48 CVLs, 18 compulsory liquidations and seven administrations. There were no CVAs or receivership appointments.

Historically, compulsory liquidations were the most common type of company insolvency in Scotland. However, since April 2020, numbers of CVLs have remained higher than numbers of compulsory liquidations.

Commenting on the figures, 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.

“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.”