According to recent statistics, the amount of firms entering liquidation in Scotland has surged, with the challenge of the pandemic to blame.
The Accountant in Bankruptcy recorded 163 cases of firms entering liqudaition in the quarter ending June 30th. This was up by 65 per cent since in the same period of 2020, 99 cases were recorded. Compared to the three months to March 31st, this number was up by 80%, as 91 cases were recorded then.
Creditors voluntary liquidations increasing by 132% is behind the rise. This comes as worried directors fear they may not be able to continue trading in the next few months, based on the challenging environment and trading conditions.
“With an uneven easing of restrictions across the country, a number of businesses are still adapting to the ‘new normal’ and will have to wait a while before they return to pre-pandemic trading,” said Iain Fraser, who chairs R3’s Scottish Technical Committee.
There is more on this matter shared in the Scottish Herald.