Official statistics published by Scotland’s Accountant in Bankruptcy (AiB) reveal the number of companies in liquidation or receivership has increased 16.2% year on year.
However, looking at the latest quarter results (Q4 2015/16), the number of Scottish companies in liquidation has actually fallen by 9.8% since the third quarter.
There were 142 compulsory liquidations and 86 creditors voluntary liquidations (CVLs). While compulsory liquidations only increased 2.2.% since the same time last year, the total number of CVLs increased 53.6%.
There were also 358 members voluntary liquidations (MVLs) in the fourth quarter compared to 190 the quarter before. Year on year, the number of MVLs increased a whopping 143.5%. Businesses were most likely motivated to take action before taxes increased this April.
Together with a fall in gas and oil prices, the upcoming EU referendum and Scottish elections, businesses are facing uncertain times and perhaps are struggling more than usual. As the National minimum wage increases, companies may continue to feel the strain on their finances.