As the cost of living crisis continues to bite, levels of businesses in Scotland which are already experiencing ‘critical’ or advanced distress have seen a massive increase in the final quarter of 2022 compared with the same period the previous year.
The latest Red Flag Alert data from business recovery firm Begbies Traynor, for the final three months of 2022, showed a 161% year-on-year increase in the number of businesses in Scotland experiencing ‘critical’ distress - companies that have financial problems such as decrees of more than £5,000 filed against them.
Scotland also saw higher levels of critical distress in the fourth quarter, compared with the previous quarter, with a rise of 35%.
