Scottish Company Insolvencies Rise by 5% Amid Debt Challenges – Scottish Business News

During November, 114 company insolvencies were registered in Scotland, a 5% increase compared to the previous year.

Data from the Insolvency Service reveals this includes:

• 55 creditors’ voluntary liquidations (CVLs)
• 54 compulsory liquidations
• 5 administrations

No company voluntary arrangements or receivership appointments were recorded.

Historically, compulsory liquidations were the dominant type of insolvency in Scotland. However, since April 2020, CVLs have consistently outnumbered compulsory liquidations.

Between 26 June 2020 and 30 November 2024, Scotland saw just two restructuring plans and no moratoriums.

The total insolvency rate in Scotland for the 12 months to November 2024 was 53.2 per 10,000 companies on the effective register, slightly lower than the previous year, which ended at 54.1.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, commented:
“Insolvency levels, particularly liquidations, have remained high throughout the course of the year and, despite improving economic conditions – including lower levels of inflation and interest rate cuts – we anticipate them remaining so in 2025, as firms continue to carry unsustainable levels of debt.”