Credit, collections & insolvency news
The number of Scottish businesses becoming insolvent or entering receivership fell from 218 in the second quarter of 2016-17 to 209 in the current quarter. The latest figures are from Accountant in Bankruptcy (AIB) which reports on the number of corporate insolvencies and member voluntary liquidations logged. As a consequence of the time taken between the date a corporate insolvency is awarded or a member voluntary liquidation is registered and when AiB receives notice, the figures may not exactly reflect the number of corporate insolvencies awarded or member voluntary liquidations registered during a quarter.
The figure for the quarter is made up of 137 compulsory liquidations and 72 creditor voluntary liquidations. No receiverships were recorded for the quarter. There were also 151 members’ voluntary liquidations, which is up from the 106 recorded in the previous quarter.
Commenting on the latest figures, Minister for Business, Energy and Innovation Paul Wheelhouse said “It is heartening to see fewer Scottish companies shutting their doors this quarter – although we are acutely aware of the challenging economic environment that our businesses continue to operate in. The reduction in numbers this quarter is better news for the Scottish economy and I hope we can see numbers fall further in due course as we seek to ensure Scotland is a place where companies can flourish.”