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Corporate insolvency numbers (liquidations and receiverships) in Scotland fell by 2.4% in Q3 2024-2025, compared with Q3 2023-2024, to a total of 285.
The number of corporate insolvencies also decreased by 8.9% compared with the previous quarter’s total of 313.
Furthermore, personal insolvency numbers (bankruptcies and protected trust deeds) in Scotland fell by 11.4% compared with the previous year to a total of 1,784.
The number of personal insolvencies fell by 6% compared with the previous quarter’s total of 1,897 (July-September 2024).
Richard Bathgate, chair of insolvency and restructuring trade body R3 in Scotland, and a restructuring partner at Johnston Carmichael, said: “While corporate insolvency levels in Scotland have fallen compared to last quarter and last month, the make-up of the figures has changed significantly and suggests that the Scottish insolvency landscape is very different to how it was three and 12 months ago. This quarter’s figures have largely been driven by a sharp increase in the number of solvent firms being wound up and by a rise in creditors turning to winding up orders to chase the debts they are owed.
“Member Voluntary Liquidations (MVL) have increased over the last three months to the highest level since the last quarter of the 2020-21 financial year. This suggests that directors of solvent firms are choosing to wind up their companies, perhaps ahead of the Employers’ National Insurance and National Minimum Wage rises being introduced in April, which we know will be a financial blow for many businesses.”
He added: “The rise in compulsory liquidations suggests that over the last three months creditors have become more willing to pursue the debts they are owed, and this is likely to be in an attempt to help manage their own outgoings and meet their own payment deadlines as businesses across the economy feel the pinch of rising costs and a customer base that is becoming wary of spending on anything that isn’t essential.
“Looking ahead to this year, Scottish businesses have entered 2025 facing a mix of challenges and opportunities. While economic conditions have shown signs of recovery compared to the past two years, rising costs continue to put pressure on companies across the board.”
