Small businesses ‘struggle’ after Sauchiehall Street fire
THE number of small businesses going into liquidation has increased due to disasters including the Sauchiehall Street fire.
Figures for the first nine months of the year showed a 32 per cent rise in those going under across Scotland.
A total of 679 companies were affected, compared to 513 in the same period of 2017.
Blair Nimmo, of professional services firm KPMG, said “local challenges”, such as the fires in Sauchiehall Street, had a “negative impact on smaller traders”.
The rise in liquidations meant there was an increase in company insolvencies, which went from 581 in the first nine months of 2017 to 721 over January to September 2018.
The figures from KPMG also showed the number of large businesses failing in Scotland fell by nearly two-fifths.
There were 42 companies that went into administration in the first nine months of 2018, 38 per cent less than the 68 recorded in the same period the previous year.
KPMG said this showed a “positive environment” for larger firms in Scotland.
Mr Nimmo, the head of restructuring for KPMG in the UK, said: “Business confidence in Scotland is among the highest in the UK with large businesses in particular demonstrating resilience in the face of stalling Brexit negotiations and wider political uncertainty,” he said.
“UK headlines have been dominated by challenges in the retail and casual dining sectors but there are positive signs of growth in Scotland in sectors such as tourism and financial services.
“Demand for building services also remains strong, thanks to ambitious housing targets, leading to steady growth in the sector.
He said although there have been no recent highprofile business failures in Scotland and at only 57 administration appointments over the last 12 months, numbers are the lowest they have been since our records begun in 2006, prior to the last recession.”
Mr Nimmo added: “Local challenges will also have made their mark. The Sauchiehall Street fires in Glasgow, for example, will have had a negative impact on smaller traders, causing some to close their doors.
“However, local factors aside, Scottish business as a whole remains stable, with marginal growth experienced in some sectors.
“Looking ahead, there is increased nervousness surrounding Brexit and there’s still a lot of guessing as to how it will impact the economy, and when.”