Scotland insolvency rate went up by 17% in the second quarter, compared with the first quarter of the year, according to research by KPMG – with smaller companies really suffering.
There were 329 Scottish corporate insolvencies during the second quarter of 2011, compared with 282 in the first quarter of the year.
The statistics also show that the number of administrations and receivership appointments, which usually affect larger businesses, fell by 19% between April and June, compared with the previous quarter. So this means a larger increase in liquidations.
There is not much of a rescue culture in Scotland as demonstrated by these figures. But the main problem is there are very few CVA's done in Scotland. In fact, we are going to be holding a seminar on CVA's in Edinburgh in the Autumn to try and address this problem and educate professional advisors on the advantages of the CVA rescue mechanism. If you are interested in attending then please email me email@example.com. A CVA gives the company time to pay back creditors and time to cut costs and return to profitability.