Level of insolvent companies in Scotland at five year low

22 January 2014

KPMG have released figures showing the level of insolvent companies in Scotland is at its lowest rate since 2008. The total number of administrations, liquidations and receiverships totalled 855 in 2013 compared to 1167 in 2012. The insolvency rate has not been this low since 2008 when there were only 803 cases in Scotland. 

According to KMPG, out of the 855 insolvent companies in 2013, 730 went into liquidation whilst the remaining cases entered administration or receivership. 

While there are many suffering financial difficulty, the overall figures are a positive sign for corporate companies across Scotland.

KMPG’S Head of Restructuring in Scotland, Blair Nimmo, commented, ‘As we enter 2014, these figures continue to show a slowing in the level of corporate insolvencies. For the first time since the start of the economic downturn, the annual number of business failures in Scotland is no longer in the thousands, which is another positive signal for the Scottish economy.’

However, Nimmo suggests more should still be done to help businesses get access to funding which is a still a challenge for many.  

Small businesses that are starting to financially struggle should be aware of the wide range of options that are available to them, for example, restructuring strategies or a CVA. Taking action is the best thing a business can do before debt and legal actions spiral out of control.