Company insolvencies have risen sharply in a further indication of the cost pressures they are facing.
Insolvency-related activity in October rose by 17% on September and by 9% on October last year, according to restructuring firm R3.
Based on data provided by CreditSafe revealed there were 124 insolvencies last year, up from 106 in September.
The monthly increase in insolvency-related activity, which includes administrator and liquidator appointments together with creditors’ meetings, is a trend mirrored across the UK, with a decrease only in Wales.??
Emma Widdowson, chair of R3 in Scotland and legal director at Addleshaw Goddard, commented: “The rise in insolvency-related activity in Scotland last month is a clear sign of the ongoing pressures businesses are facing.
“This trend isn’t isolated to Scotland as we’re seeing similar patterns across most of the UK.
“Factors such as sustained cost pressures, tighter margins, and the increasing impact of interest rates and inflation continue to weigh heavily on businesses.”
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