Number of companies utilising small firms rescue process drops 12% 

Scarp scheme helps firms which are viable, yet insolvent, restructure debts, avoid liquidation, and ensure creditors get better outcome

The hospitality sector and the construction sector both accounted for 21% of cases in 2024. 

Firms operating in the hospitality and construction sectors accounted for the highest proportion of those going through the Small Company Administrative Rescue Process (Scarp) so far this year. 

The Scarp scheme was introduced in late 2021 to help small and micro firms which are still viable, yet insolvent, restructure their debts, avoid liquidation, and ensure creditors get a better outcome rather than the company being wound down.