Corporate insolvencies up 23% from last year

The number of Scottish companies falling into insolvency has risen compared with last year, according to the Accountant in Bankruptcy (AIB).

Official quarterly figures showed 245 registered Scottish companies became insolvent from April to June, a rise of 23 per cent from 200 for the same period in 2017.

This total comprised three receiverships, 145 compulsory liquidations and 97 credi- tors’ voluntary liquidations. Data for the financial year showed corporate insolvencies increased from 846 in 2016-17 to 884 in 2017-18.

Tim Cooper, of insolvency and restructuring body R3, said the number of affected businesses will be higher.

He said: “The statistics do not quite tell the whole story, as company voluntary arrangements and company administrations are not included.

“Every insolvency will have a knock-on effect for other companies which were its suppliers, customers or creditors.”