Scottish corporate insolvencies decreased 16% year-on-year during the second quarter, from 298 to 250.<\/p>\n
The latest statistics from Scotland’s insolvency service Accountancy in Bankruptcy also showed that creditors\u2019 voluntary liquidations decreased by 20.1%, while compulsory liquidations decreased from 134 to 119.<\/p>\n
There were 81 members\u2019 voluntary liquidations in the second quarter this year, compared with 92 during the same period last year – a decrease of 12%.<\/p>\n
Corporate insolvencies remain above pre-pandemic levels, but fell slightly in the second quarter this financial year.<\/p>\n
David Alexander, head of debt recovery at law firm Gilson Gray, said: \u201cCash flow remains tight, with ongoing operating costs, historic borrowing and subdued consumer demand continuing to weigh on companies.<\/p>\n
\u201cThe fall in insolvencies may reflect some businesses managing to hold on for longer, rather than a significant improvement in trading conditions.\u201d<\/p>\n
A 31% rise in personal insolvencies suggests that financial difficulties are becoming more acute for households, noted Alexander.<\/p>\n
\u201cThere can also be a knock-on effect when businesses struggle, particularly for directors who have provided personal guarantees against company borrowing,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
Company insolvencies still remain above pre-pandemic levels<\/p>\n","protected":false},"author":278857,"featured_media":3582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120782],"coauthors":[137126],"class_list":["post-8557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-featured-story","tag-scotland"],"yoast_head":"\n