Report Reveals Fall in Scottish Corporate Insolvency Numbers

There has been a fall of 3.8% in the number of corporate insolvencies in Scotland in the third quarter of 2017/18, according to the latest figures from Scotland’s Accountant in Bankruptcy (AiB). 

The figures show that total corporate insolvencies dropped from 210 to 202 compared to the same quarter a year ago. The figure for Q3 of 2017-18 is made up of 124 compulsory liquidations and 78 creditor voluntary liquidations. No receiverships were recorded for the fifth quarter in succession. There were also 129 members' voluntary liquidations, which is down from the 152 recorded in the same quarter for 2016-17.

The insolvency and restructuring trade body R3 has commented on the latest figures.

“In all, over 2017, the AiB recorded 15% fewer liquidations compared with 2016 (782 in 2017 against 920 in 2016),” said Tim Cooper, Chair of R3 in Scotland. “While 2017 may not go down as a banner year for the Scottish business community, the decrease in liquidations gives some reassurance that the economy is still ticking over. The AiB does not record business rescues – that is, administrations or Company Voluntary Arrangements – so this is an incomplete picture. It’s important to remember that insolvency isn’t necessarily the end of the road, and plenty of businesses entering an insolvency procedure will be rescued.”

“You could forgive Scottish firms – along with their peers across the UK – from feeling that the corporate landscape is getting trickier to negotiate,” he added. “Companies looking to put themselves on a firm footing for 2018 and beyond should consider speaking to a licensed and professional business advisor, making sure to check their credentials.”

Contact our Specialist Insolvency Advisers

At MLM Solutions we understand that facing up to financial challenges can be extremely difficult and stressful. However, you should be reassured to know that there are options available and, with the right advice and support, you can take the necessary steps to improve your situation. Contact us today to find out more about how we can help you.

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