Insolvencies Down Among Scottish Companies
October 29, 2015
Almost 14 per cent fewer Scottish companies went out of business in the third quarter of this year as compared with the same period in 2014, official figures have revealed.
According to the Accountant in Bankruptcy (AiB), a total of 180 businesses registered in Scotland became insolvent between the beginning of July and the end of September 2015, which is a notably lower figure than the 209 recorded in the same period last year.
The figure of 180 also means that there was a fall of 8.9 per cent in the number of newly-insolvent Scottish companies between the second and third quarters of the year.
In addition to its numbers on corporate insolvency, the AiB has also reported on the number of individuals entering into personal insolvency across Scotland in the third quarter of the year, with 2,230 such instances recorded in the period.
Remarkably, there has been a 25.4 per cent drop in the number of Scots entering either bankruptcy or into a protected Trust Deed between the third quarter of 2014 and the same period this year.
“The longer term trend of people falling into financial difficulty and seeking debt relief continues to be a declining one, which will be welcomed by everyone who wishes to see Scotland prosper,” said the Scottish government business secretary Fergus Ewing.
“Fewer businesses becoming insolvent also means more people can remain in work, which is good news for industry and provides further evidence that Scotland’s economy goes from strength to strength,” he said.
Although the number of businesses entering into insolvency in Scotland has been falling in recent quarters, there continues to be widespread concern at the prospects for companies operating within the country’s oil and gas sector.
A decline in wholesale prices for oil and gas over the past 18 months has seen a sharp decline in employment levels within the industry in Scotland and throughout the UK. A number of large operators within the industry in Scotland have been forced to cut jobs on a considerable scale in recent months in order to avoid becoming insolvent.
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