Scottish business insolvencies increase by 181%

Latest figures from Accountant in Bankruptcy (AiB) has indicated that business insolvency numbers (liquidations and receiverships) in Scotland nearly tripled in February.

In February 2022 there were 73 business insolvencies registered in Scotland, 181% (2.8 times) higher than February 2021 but 15% lower than in February 2020.

The business insolvencies comprised of 10 compulsory liquidations, 60 CVLs and three administrations.

There were no CVAs or receivership appointments.

Historically, the volume of business insolvencies registered in Scotland has been driven by compulsory liquidations. However, since April 2020, there have been more than twice as many CVLs as compulsory liquidations.

Between 26th June 2020 and 28th February 2022, in Scotland, no moratoriums were obtained and two companies had a restructuring plan registered at Companies House. These two new procedures were created by the Corporate Insolvency and Governance Act 2020.