Record number of Scottish firms go bust

The number of firms going bust are the highest ever recorded

The number of companies going bust in Scotland reached record levels in 2010.

New figures, released by the Accountant in Bankruptcy, have revealed that 1,098 companies were declared insolvent during the year.

That is an increase of 45.8% on the previous 12 months and a rise of 21.2% on the previous highest figure of 906 from 2002.

Meanwhile, the number of people becoming insolvent in Scotland has fallen on the same time last year.

There were 4,583 personal insolvencies in the final three months of 2010, a fall of 11% on the same period last year.

The greatest drop was among low income earners.

Anne Buchanan, corporate recovery partner with PKF, said the type of court action being used for bankruptcy indicated that more affluent families were finding economic conditions difficult.

She said the overall fall in the number of personal bankruptcies in Scotland was welcome but said she wondered "whether the figures were not simply the calm before the storm."