This November there were 109 company insolvencies registered in Scotland. This was comprised of 30 compulsory liquidations, 74 CVLs and five administrations. There were no CVAs or receivership appointments.

Historically, the volume of company insolvencies registered in Scotland has been driven by compulsory liquidations. However, between April 2020 and March 2022, approximately three times as many CVLs as compulsory liquidations were registered. In the first eleven months of 2023, CVL numbers remained more than 1.5 times higher than compulsory liquidation numbers.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “We’re likely to see insolvency numbers rise as businesses across the Scottish economy grapple with operational cost pressures stemming from persistent input cost inflation and interest rates that are at a 15-year high, along with weak customer demand.

“Businesses will be hoping that the new year brings an improvement in conditions. But if this doesn’t materialise, it could leave many facing a crunch point as they kick off 2024.

“Management teams that are already noticing signs of distress now should be seeking support proactively before cracks turn into crisis and the challenges, particularly around available cashflow, become insurmountable.”