Analysis of data from The Gazette Official Public Record shows that, while administrations increased year-on-year, the figure remains below the 41 recorded in the first half of 2024. Scotland recorded 27 administrations during the first half of 2023 and 28 in 2022.

Looking at the UK by constituent country, England recorded the highest number of administrations with 1,098, followed by Scotland (39), Wales (17) and Northern Ireland (5).

Fiona Pask, partner and head of Scotland at Shakespeare Martineau, said: “Scotland has seen business failures increase compared with last year, although administration numbers remain below the peak recorded in 2024. The figures show that financial pressures remain significant even if the increase has not been as pronounced as in some other parts of the UK.”

The Scottish figures form part of a wider national picture, with UK administrations reaching their highest level since 2010. Across the UK, 1,159 companies entered administration in the first six months of 2026 – a 48% increase from the 783 recorded during the same period in 2025. The total also marks the first time administration volumes have exceeded pre-pandemic levels (940 in 2019).

Nationally, the real estate sector experienced the most significant increase, with administrations rising more than four-fold from 78 in the first half of 2025 to 336 in 2026.

Retail remained under considerable pressure despite a slight year-on-year improvement, recording 142 administrations compared to 153 in 2025. Manufacturing (102, up from 77), hospitality (99, up from 80) and construction (88, up from 79) completed the five worst-affected sectors. The hospitality industry came under notable pressure in January, with 32 administrations recorded during the month, 22 of which related to pubs and bars.

Elsewhere, the financial sector recorded a sharp increase from 47 to 85, while the arts and entertainment industry almost doubled from 18 to 34.

The figures include several high-profile corporate failures – including car parking firm NCP – and reflect the administration of hundreds of special purpose property companies in Greater London linked to the collapse of bridging lender Market Financial Solutions.

Andy Taylor, partner and head of restructuring at Shakespeare Martineau, added: “Many businesses have spent the past few years absorbing higher borrowing costs, inflationary pressures and increased operating expenses.

“While inflation has eased from its peak, the cumulative impact of those challenges, combined with subdued economic growth and cautious consumer spending, is now feeding through into administration numbers.

“The fact that administrations remain above the levels seen in both 2022 and 2023 shows that many businesses continue to operate in an extremely challenging environment.”

Geographically, Greater London once again became the UK’s insolvency hotspot, with administrations tripling from 158 in the first half of 2025 to 479 in 2026.

The North West remained the second worst-hit region despite a slight fall from 165 to 158 administrations, while the South East (102, up from 92), West Midlands (90, up from 56) and Yorkshire & The Humber (73, up from 63) completed the top five.

Andy Taylor continued: “The headline figures have been heavily influenced by the increase in real estate-related appointments in Greater London, including hundreds of special purpose property companies connected to the collapse of Market Financial Solutions.

“However, that should not distract from the wider picture. Businesses across multiple sectors continue to face weak economic growth, higher employment costs, refinancing pressures and subdued demand.

“The ongoing financial distress affecting established businesses, including high-profile failures such as NCP, demonstrates that these challenges are not limited to smaller operators or specific industries.”

Despite some sectors and regions proving more resilient than others, Andy Taylor warned businesses to act early if they encounter financial distress.

He said: “The earlier directors seek professional advice, the more options they have to restructure, protect value and, where possible, rescue the business. Waiting until cashflow becomes critical can significantly reduce those options.”