Scotland’s insolvency figures hit year high
Rising business costs have seen insolvency-related activities in Scotland hit their highest level this year.
New research from R3, the insolvency and restructuring trade body, reveals 122 cases of liquidator appointments, administrator appointments and creditors’ meetings in April.
This is the highest number since December 2022, when 142 cases were recorded, and 11.9% higher than March’s total of 109.
According to the data provided by Creditsafe, Scotland saw the highest monthly rise in insolvency-related activity of all the regions and nations in the UK in April. Wales saw an increase of 10.1%, but numbers fell in all the other nations and regions.
The Scottish figure was 32.6% higher than in April 2022.
Richard Bathgate, chairman of R3 in Scotland, says: “The monthly and yearly rises in insolvency-related activity in Scotland reflect the challenging trading climate that many businesses are still experiencing post-pandemic.
The high cost of living is affecting consumer spend, while at the same time the costs of rent, utilities, raw materials and transportation for Scottish businesses have all increased.
“These factors, coupled with pressure to increase staff wages have left many businesses struggling to grow, to pay their bills, or to pay off existing debt.”