The total number of company insolvencies was comprised of 56 CVLs, 42 compulsory liquidations, two administrations and two receivership appointments. There were no CVAs.

The total insolvency rate in Scotland in the 12 months to August 2024 was 53.2 per 10,000 companies on the effective register. This was down by 1.7 from the preceding 12 months ending August 2023.

David Meldrum, insolvency practitioner at Azets, commented on the figures: “Creditors voluntary liquidations (CVLs) continue to exceed compulsory liquidations, a trend that has continued since the pandemic; however, there was an increase of 27% in compulsory liquidations from July 2024 and a 21% reduction in CVLs in the same period which may suggest that creditors are starting to take action in an attempt to recover some of their debt through formal insolvency proceedings.

“Unusually, there were also two receivership appointments during August, the first since March 2023.”

He continued: “The statistics demonstrate that despite falling numbers in August 2024, there are still high numbers of businesses experiencing distress and the long-term trend shows that corporate insolvencies have been steadily increasing since 2022, exacerbated by the withdrawal of government support measures post-pandemic.

“Many businesses that survived during that period, with the help of loans and grants, are now facing reality as those financial cushions have evaporated.

 “As we look forward, the pressure on businesses is unlikely to ease in the near future. The Bank of England has held interest rates at 5%, and an increasingly cautious consumer market means that we may continue to see elevated insolvency levels into the rest of 2024 and beyond.”