This increase comprised 35 compulsory liquidations, 58 creditors’ voluntary liquidations (CVLs), four administrations, and two company voluntary arrangements (CVAs), with no receivership appointments. Notably, CVLs have surpassed compulsory liquidations since the coronavirus pandemic, a trend that continued throughout the first ten months of 2023.

Michelle Elliot

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, commented: “Insolvency levels have jumped up again after last month’s slight respite – a reflection of the severity of the challenges that businesses across the country continue to face.

“Firms are having to stomach an unwelcome cocktail of long-standing debt, rising interest rates, sticky inflation and weakened customer demand. In some sectors the pressures are reaching critical levels.

“Just before the weekend we saw industry representatives for Scottish hospitality call out for more government support in the face of what it described as a ‘crisis’.”

Ms Elliot continued: “It’s important to remember that rising insolvency rates don’t just matter for the collapsed businesses alone. Each insolvency can have a knock-on effect on their supply chain, and in some cases even cause collapse in others.

“In the face of these strong headwinds, it’s important that all businesses are watching for signs of customer or supplier distress, and act quickly to protect their operations at the first signs of trouble.”