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Scottish company insolvencies increase 21.1% year on year

Written by companyrescuelondonadmin 3 April 2017

The total number of Scottish companies entering creditors voluntary liquidation (CVL) increased 19.6% since the same quarter last year while, similarly, the number of companies put into compulsory liquidation rose by 19.4%. The total number of liquidations and receiverships increased 21.1% since the same period last year, however compared to Q1, the number fell by 15.5%. The latest insolvency statistics from the Scottish Insolvency Service, Accountant in Bankruptcy, cover the second financial quarter of 2016 (equivalent to Q3 calendar year), with figures collated to the end of September 2016. 

Compared to the previous quarter, the number of creditors voluntary liquidations actually fell by 24.7%, down from 81 to 61. Companies entering compulsory liquidation decreased by 12%, down from 175 to 154.  The number of members voluntary liquidations fell by 50.7% since Q1, however increased 17.8% year on year. 

Since the spike of insolvencies in Q2 2015, there has actually been a downward trend in corporate liquidations.  Paul Wheelhouse, Minister for Business, Innovation and Energy, commented, “The number of businesses going to the wall has fallen by 16 per cent on the last quarter and is now at the lowest level we have seen in the last 12 months. “Fewer businesses being forced to close means more people can keep their jobs and contribute to build a robust and growing economy. However, given the context of the impact of investor and business uncertainty created by the EU referendum result, we need to remain vigilant and will continue to monitor trends carefully.” AiB gov – Q2 2016